Avon (NYSE:AVP) shares jumped sharply in Friday afternoon trading after the cosmetics maker announced that Andrea Jung, its former CEO, will leave the company’s board of directors at the end of the year.
Currently, Jung remains the board’s Executive Chairman. She was ousted as CEO in December after more than a decade as the head of Avon. She had originally been slated to remain Executive Chairman for two years, Reuters noted.
News of Jung’s impending departure from the board sent Avon shares up more than 6%.
After stepping down from the board, Jung will continue with the company as a senior advisor. Avon will pay Jung $1 million in annual base salary, as well as other compensation.
While credited with expanding the company into overseas markets, Jung incurred the wrath of investors in recent years as Avon fell behind is rivals. As the company consistently missed profit forecasts and found itself embroiled in an overseas corruption investigation, investors demanded new leadership.
In April, Sherilyn McCoy, formerly a top Johnson & Johnson (NYSE:JNJ) executive, was tapped to replace Jung as CEO.