Shares of Avon Products (NYSE:AVP) opened nearly 11% higher on Wednesday, a day after the company announced plans to separate the chief executive and chairman roles and start an outside search for a new CEO.
In 2012, the New York-based maker of beauty products, lotions and perfumes will conduct an external search to replace CEO Andrea Jung, who will become the company’s executive chairman.
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“I believe the time is right to separate the Chairman and CEO roles,” Jung said, who has been Avon’s chief officer since 1999. “A new CEO will provide a fresh lens and additional operational and executive leadership.”
Over the past 12 years the company has transformed into a globally-managed business in more than 100 countries, which has helped it double both revenues and the number of Avon representatives.
In her new role as chairman, Jung said she will work closely with the new CEO to assure a smooth transition.