Avon Discloses Details for McCoy’s Compensation

Posted on April 24, 2012 @ 08:50 am

Avon Products, Inc. today disclosed that with its recent hiring of Sherilyn S. (Sheri) McCoy as chief executive officer, she was given a sign-on award of 200,000 restricted stock units (RSUs) for Avon common stock. These RSUs were granted outside the terms of the company's 2010 Stock Incentive Plan in reliance on the exemption under NYSE Listed Company Manual Rule 303A.08, which requires a public announcement. The RSUs were granted to Ms. McCoy to compensate her for forfeiting a significant amount of value in unvested equity and other benefits as a result of her departure from her prior employer Johnson & Johnson and as an inducement for her to join Avon, reports the company. The RSUs vest and are settled ratably over five years and may vest earlier upon the occurrence of certain events. In the event of McCoy's disability, death or involuntary or constructive termination, any outstanding RSUs would vest and be settled. Upon McCoy's voluntary departure or departure for cause from the company, any outstanding RSUs would automatically be forfeited.