
Jung will be succeeded by Fred Hassan, who is currently lead independent director, as well as a managing director and partner at Warburg Pincus and the former CEO of Schering-Plough.
The beauty-products company separated the roles of chief executive and chairman when the board ousted Jung in favor of former Johnson & Johnson (NYSE: JNJ) executive Sherilyn McCoy earlier this year. Jung had been CEO since 1999. Her image as one of the best chief executives of a large public company remained untarnished until last year, when Avon’s earnings were battered and questions about the bribery problems in China arose.
The company is reassessing its long-range business plan and has planned some layoffs and other cost savings to stabilize results in the near term.
Shares are up about 6% to $17.20 in early trading. The 52-week range is $14.45 to $23.94.