Avon – Andrea Jung, Nr. 3 in The Forbes Worst CEO Screw-ups Of 2012

  • December 31, 2012
  • By Team Business For Home
Andrea Jung Avon Forbes

 

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According to Forbes Andrea Jung is the Nr. 3 in the worst CEO Screw-ups of 2012.

Andrea Jung, Avon, resigned as CEO at the end of 2011 and as chairman in October 2012.

  • Presided over a long period of poor performance, missing analysts’ estimates. Third quarter earnings were down 81%. Stock has fallen from $30 in May of 2011 to $14.
  • Failed to groom a successor. In the spring the company brought in Sheri McCoy, formerly a top executive at Johnson & Johnson.
  • Left the job of chief operating officer open since 2006.
  • Rejected a $10.7 billion acquisition offer from Coty.
  • Though Jung hasn’t been accused of any wrongdoing, the company is being investigated for violations of the Foreign Corrupt Practices Act, which bars bribery of foreign officials to get business. The investigation has cost Avon $300 million in legal expenses.

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Comments (2)

  1. For years, Avon and the DSA have raved about Andrea Jung like she’s the ultimate CEO even though the markets have had concerns about her since 2007! This company should be doing $15billion+ and making a fortune. Thats why a company was willing to pay $10.7billion.

    She did an amazing job turning Avon from this backward company to a vibrant global brand yet hasn’t got it right for ages. AND… therefore all the networkers [as she introduced networking in many countries] have obviously suffered.

    Avon is our leading flagship company. Its important to the whole industry that it flourishes. Let’s hope the new CEO and Chairman [hopefully different people] can bring new vision to this company rather than the failed old done better.

    We need to remember that leaders must deliver for their people or they lose the right to lead.

    And PS…. yes, its a fake name and I know ALOT about this company. I am not a current or ex-employee or have anything personal against Ms Jung. She failed, should have left 5 years ago and thats why she gets paid the big bucks!

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