Avon to Propose Annual Election of Directors in 2005
04 May 2004 - 5:32AM
PR Newswire (US)
Avon to Propose Annual Election of Directors in 2005 Shareholder
Proposal Withdrawn From 2004 Proxy Statement NEW YORK, May 3
/PRNewswire-FirstCall/ -- Avon Products, Inc. today announced that
its Board of Directors will submit a proposal in the company's 2005
proxy statement to declassify the Board structure, leading to the
annual election of directors. In response, Walden Asset Management,
the principal proponent of declassifying Avon's board, has chosen
to withdraw its proposal from consideration at Avon's annual
meeting of shareholders on May 6, 2004. "Avon's Board is committed
to listening and responding proactively to shareholders," said
Andrea Jung, Avon's chairman and chief executive officer. "Our
Board has an exemplary record of service to the long-term interests
of our investors, as demonstrated by the stellar 150% increase in
Avon shares since 2000." Discussing the Board's decision to propose
moving to the annual election of directors, Ms. Jung noted that
last year, the Board conducted a diligent and comprehensive review,
and had concluded that retaining a classified board structure was
in the best interests of shareholders. "The Board believes that the
current classified structure has provided the continuity of
experience and perspective to facilitate long-term planning," she
said. "Nonetheless, in making this move, the Board acknowledges the
strong sentiment in favor of declassification, and recognizes
shareholders' view that this measure will enhance Board
accountability." Timothy Smith, Senior Vice President of Walden
Asset Management stated, "The proponents are pleased to withdraw
this proposal and commend the Avon Board for its forward-looking
perspective. Avon's top management and Board undertook a
painstaking review of this issue, and are very attuned to the views
of Avon shareowners who overwhelmingly registered their support for
the principle of annual election of Directors to increase Board
accountability. We believe this change demonstrates Avon's
commitment to be a leader in corporate governance." Avon is the
world's leading direct seller of beauty and related products, with
$6.8 billion in annual revenues. Avon markets to women around the
world through 4.4 million independent sales Representatives. Avon
product lines include such recognizable brand names as Avon Color,
Anew, Skin-So-Soft, Avon Solutions, Advance Techniques Hair Care,
Avon Naturals, Mark, and Avon Wellness. Avon also markets an
extensive line of fashion jewelry and apparel. More information
about Avon and its products can be found on the company's web site
http://www.avoncompany.com/. DATASOURCE: Avon Products, Inc.
CONTACT: Media: Victor Beaudet, +1-212-282-5344, or Investors:
Renee Johansen, or Rob Foresti, +1-212-282-5320, all of Avon
Products, Inc. Web site: http://www.avon.com/ Company News On-Call:
http://www.prnewswire.com/comp/079575.html
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