Avon executive reshuffle leaves top CFO job open

By Simon Pitman

- Last updated on GMT

Related tags Developed country

Following a disappointing fourth quarter Avon Products has reappointed its existing CFO Charles Cramb to head up its developed markets group, leaving the key finance position vacant.

Avon CEO Andrea Jung simultaneously announced the reorganization of five other key executive positions, in a move that will see internal management changes in its developing and developed markets.

“Avon continues to have significant growth opportunities across our global geographic portfolio. Our goal is to capture these opportunities by realigning our top management talent and also through strategic new hires that bring added management capabilities,”​ said Jung.

Jung went on to contrast the current executive reshuffle with management layers that were introduced in 2005, a move that was part of a major restructuring drive that helped the company save in excess of $400m per year.

New executive appointments reflect complex business structure

However, since the new layering system was introduced, Jung said the company had become ‘increasingly complex’, a fact that has been underlined by its expansion into key developing markets.

“The realigned management structure reflects this new reality and is designed to enhance operational rigor and better position us to execute effectively across the portfolio,"​ she stated.

While Avon is currently seeking an external replacement for the now vacant CFO position, the other key executive reshuffle is Charles Herrington, who is currently the VP of Latina America and Central and Eastern Europe, who will now become the VP of developing markets.

The other four executive changes concern the developing market and developed market groups respectively, with two new internal appointments for each group.

Appointments for Avon's developed and developing groups

For the developed market group Jorge Martinez-Quiroga has been named VP of the North America commercial business unit, while Anne Segatti has been named VP and commercial business leader of Western Europe, Middle East and Africa.

In the developing market group, Srdjan Mijaskovic has been named senior VP and commercial business leader for Central and Eastern Europe, while Angela Cretu has been appointed general manager of Avon Russia and Bob Briddon has been named Vice President and commercial business leader of Asia Pacific, including China.

In recent years Avon has reported mixed financial results, primarily characterized by stagnant or falling sales in the developed markets, counterbalanced by strong growth in the developing markets, particularly in Latin America and Asia Pacific.

Reshuffle reflects slower fourth quarter results

The executive reshuffle comes off the back of disappointing financial results that ended 2010 on a less positive note. The company recorded a significant dip in its profits for the fourth quarter 2010, on the back of flat sales.

Sales for the quarter were up by 1.3 percent to $1.3bn – a result that included a 5 percent impact from negative currency translations, but was equally helped by higher retail prices worldwide, together with a strong performance from the China market.

But despite the modest sales gain, net earnings fell by 15 percent to $229.5m, hit by the effects of currency translations as well as increasing commodity prices.

Related topics Business & Financial

Related news

Show more