Avon names a new CEO
Investors were not pleased with the choice of Sherilyn McCoy to lead the company.
Investors were unhappy with the company's new choice of CEO. After all the problems with Avon's last CEO, you'd think that just about anyone would be an improvement. But no. As far as the market is concerned, Avon made a bad choice in Sherilyn McCoy.
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Let's start with this: McCoy recently led the consumer division at Johnson & Johnson (JNJ). That division has suffered dozens of product recalls stemming from quality problems at the factories that make Tylenol and Motrin. The recalls -- the most recent of which was in February -- have cost the company more than $1 billion in sales.
To be fair, McCoy took control of the consumer products division only in January 2011. The problems began long before that. But she didn't seem to make much progress in her first year at the helm. Before that, she won praise for improving the company's pharmaceutical business. She joined the company in 1982 as a scientist in the research division.
Another problem with McCoy is that she's unknown to investors. She was thought to be next in line for the CEO spot at J&J, but the company passed her over and named Alex Gorsky to the job, Forbes reports.
Does McCoy have what it takes to fix Avon's long-running problems? Right now, the market is not convinced.
The company's previous CEO, Andrea Jung, stepped down amid shrinking profits and declining sales in some markets. The company has been caught in a bribery investigation that started in China and has expanded to other countries, according to The Associated Press. Federal regulators are looking at Avon's relationships with financial analysts.
Avon's stock has plunged in the past year.
Jung will become the executive chairman of the company -- which makes very little sense -- while McCoy moves into the CEO role.
McCoy's first job will be to handle the takeover offers coming from Coty. Avon rejected the first offer as too low, but Coty is very aggressive in the acquisition arena and may come back with another try.
After that, McCoy will need every management trick in the book to turn Avon around.
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you would think Avon would give the job to someone with a better track record. Why hire someone who is known to lose money? Then keep the other person who is known to lose money on board. No wonder Avon isn't making it with crappy decisions like this who would take the products seriously!
As my sainte father used to say,"In today's corporate America, you fail upward. Sad.but true: run a corporation into the ground, and you get promoted.
We are SO DOOMED in this country...
Looks like foreigners are running the business now. Starting with the outsourcing of telephone reps. You call and you can't even understand what the #$!$! they are saying. I just hang up on them and call back until I get someone who can speak ENGLISH clearly. They get rid of the good District Managers to bring in less experienced ones so they can run the heck out of them and pay less (I suppose). It use to be so united now its everyone for theirselves. If you run into problems FORGET it if you think you are going to get it fixed. getting ready to leave this company. And its true -- reps used to make s-o-m-e profit, now they charge you for putting your order 5-minutes late. Are you kidding, that's the only profit being made and they charge you another $7.50 late charges plus your $7.50 for being an e-rep. that's a total of $14.00 dollars. and you'll probably make $8.00 profit with an outstanding late fee. OMG --
Will Ms. Jung resign her seat on the Board of Directors of General Electric? I just sent my Proxy vote to GE, and recommended she be reselected to serve. Perhaps there are problems...I viewed her as a point of light, not window dressing!
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The solid report comes a month after the retailer closed all of its Canadian operations.
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