Coty Inc. still sees a future with Avon Products Inc.
Coty chairman Bart Becht is scheduled to speak to Avon investors on Monday, during a call hosted by Sanford C. Bernstein & Co. analyst Ali Dibadj. The call remains on the calendar, said a Coty spokesman on Tuesday, despite being scheduled prior to Avon on Monday naming former Johnson & Johnson pharmaceutical executive Sherilyn S. “Sheri” McCoy as its chief executive officer, effective April 23. McCoy, who will report to the board, takes the reins from Avon’s embattled chief Andrea Jung, who will assume the role of executive chairman.
For her efforts, McCoy will receive an annual salary of $1.2 million and a sign-on bonus of $1.9 million, according to a filing with the Securities and Exchange Commission.
She could also potentially make 150 percent of her base salary in an annual cash incentive program, as well as 600 percent her salary through a three-year cash and stock incentive plan.
If the company does have a change of control and McCoy is terminated without cause, she would be entitled to three times her salary and annual bonus.
The central question now, said one source in contact with investors, is, “Will Coty increase its bid?”
Coty also could choose to shift its focus to another direct seller, said several financial sources. They said Coty likely considered the Brazilian direct seller Jequiti, which is currently on the hunt for a buyer. But Avon is more attractive, given its business in Asia as well.
One Wall Street analyst said Coty needs another distribution pipeline as the life cycle of fragrances, particularly those linked with a celebrity, continues to shorten.
“Coty seems intrigued by the direct selling model,” said investment banker Elsa Berry, head of Houlihan Lokey’s cross-border consumer coverage. “If Coty wants Avon, it will have to increase the price.”
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty