Andrea Jung, chairman and chief executive officer of Avon Products Inc., took a 19.3 percent cut in total compensation during 2008, to $11.1 million from $13.7 million in 2007. According to Avon’s definitive proxy statement, filed Friday with the Securities and Exchange Commission, although Jung’s salary was unchanged at $1,375,000 and her option rewards increased more than $3 million, to $6.2 million, the decline in Avon’s stock translated into a $556,000 decline in the value of stock awards, and non-equity incentive plan compensation fell to $1.7 million from $4.3 million in the prior year. Jung’s salary hasn’t increased since March 2004, but 600,000 stock options are due to vest in March 2011, with an identical amount due to vest if and when Avon’s stock closes at or above $50 a share for 30 consecutive days in the subsequent seven years. On Friday, Avon’s shares closed at $19.90, down 18 cents or 0.9 percent.
This story first appeared in the March 30, 2009 issue of WWD. Subscribe Today.