Avon CFO Jim Scully leaves post at short notice

  • Signs for push-out forces
  • After less than two years on the job
  • Laud and praise for Scully
  • Jamie Wilson takes over
  • Scully will remain as Chief Operating Officer at Avon

(management-change.com) — New York, December 01, 2016 — Jim Scully, finance chief of Avon, leaves the position. It is a change at short notice. As announced by Avon Products, Inc. in a news release and in a regulatory filing published on Thursday, December 01, 2016, James S. (Jim) Scully leaves the post as Chief Financial Officer at the maker of beauty products in a surprising move after less than two years on the job, effective December 31, 2016.

No company wants a CFO to flame out in the first years.

Scully’s duties are taken over by Jamie Wilson, a former Chief Financial Officer at SABMiller plc.

The fact that Scully’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.

“Avon is establishing its corporate headquarters in the UK”

The management change is explained as follows. Avon said: “The Company has made solid progress on its Transformation Plan, including accelerating the pace of the 2016 cost savings initiatives and taking actions to significantly improve the Company’s balance sheet. In addition, as previously announced, Avon is establishing its corporate headquarters in the UK. The Company began transitioning key members of its leadership team to the UK in October 2016 and is on track for the headquarters to be fully operational in January 2017.”

Wilson will be based at the Avon Products UK headquarters.

Scully will remain as Chief Operating Officer at Avon

Upon January 1, 2017, James S. Scully will no longer serve as Chief Financial Officer of the Company but will continue, through 2017, to serve the Company in his capacity as Executive Vice President and Chief Operating Officer and will continue to be responsible for the Global Supply Chain and Information Technology functions, as well as lead the Project Management Office for Avon’s Transformation Plan.

Share price decline

The change follows a decline in the share price of Avon Products, Inc. since April 2013.

Yacktman holds 5.24 percent stake

Yacktman Asset Management LP reported a 5.24 percent stake in Avon Products, Inc. as of September 30, 2016. Yacktman is a privately owned investment manager.

Chaired by Chan Galbato

Avon Products, Inc. is chaired by Chan W. Galbato.

Chan Galbato was appointed Non-Executive Chairman of Avon’s Board of Directors in March 2016. Galbato is Chief Executive Officer of Cerberus Operations and Advisory Company, LLC.

Sheri McCoy serves as CEO of Avon Products, Inc. McCoy joined Avon as Chief Executive Officer in April 2012 and was elected to the Board of Directors in May 2012.

On the job as CFO since 2015

Scully has been the Chief Financial Officer and Executive Vice President of Avon Products, Inc. since March 9, 2015 and has been its Chief Operating Officer since January 1, 2016.

Scully is also a member of the company’s Executive Committee.

Scully has deep consumer expertise, a track record of working in complex environments and experience developing opportunities in international markets.

Most recently, Scully served as Chief Operating Officer of J. Crew Group, Inc.

He joined J. Crew in 2005 as the company’s Chief Financial Officer and later held the role of Chief Administrative Officer.

His responsibilities included all aspects of Finance (Accounting, Financial Planning and Analysis, Treasury and Investor Relations) as well as Operations (Information Technology, Global Supply Chain, Production/Sourcing, Legal, Real Estate, Planning and Construction, Loss Prevention and Facilities).

Prior to working at J. Crew, Scully spent eight years at Saks Incorporated, most recently serving as Executive Vice President-Human Resources and Strategic Planning.

During his tenure at Saks Incorporated, Scully also held the positions of Senior Vice President-Strategic and Financial Planning, and Senior Vice President-Treasurer.

Scully began his career at Connecticut National Bank and later became Senior Vice President-Corporate Finance at NationsBank (now Bank of America).

Scully served in the United States Army Reserves from 1987-1999, including participation in Operations Desert Shield/Storm.

He received his undergraduate degree from Siena College in Loudonville, New York.

Signs for push-out forces

It is not completely certain what forces eventually triggered Jim Scully’s move.

The Push-out Score™ determined by management-change.com suggests that push-out forces may have contributed to the management change.

Read the full story in the management-change.com report 45.2016 ($).