Dec. 22, 2011 – For a company which built a multi-billion dollar business based on selling cosmetics and other products to women, it took until 1999 for Avon to select a woman as CEO, Andrea Jung. After good years and not-so, the board decided it was time for “the longest-serving female CEO currently in the Fortune 500,” according to Hannah Karp and Joann S. Lublin writing for FINS.
Even though Jung herself agreed it was time to step down as CEO, she decided it was not time to actually leave just yet. So she has set herself up as executive chairman. This way, “she will earn a $1 million salary, a maximum annual bonus of $1 million and long-term incentives valued as much as $4 million a year.”
Two previous Avon CEOs think it is ridiculous Jung is not making a clean break. Since she still intends to call some shots, it will make it more difficult to find a replacement. David Mitchell, Avon CEO 1975-1983, called “the split CEO-chairman structure ‘a stupid arrangement.'”