Avon Announces Long-Term Inducement Award to James Scully

NEW YORK, March 12, 2015 /PRNewswire/ -- Avon Products, Inc. (NYSE: AVP) today announced that, in connection with James S. Scully's commencement of employment as Executive Vice President and Chief Financial Officer on March 9, 2015, and in accordance with the previously disclosed terms of his employment offer letter agreement, Mr. Scully was granted a sign-on award consisting of 489,596 restricted stock units (RSUs) and 121,951 performance-based restricted stock units (PRSUs). These RSUs and PRSUs were granted outside the terms of the company's 2013 Stock Incentive Plan in reliance on the exemption under NYSE Listed Company Manual Rule 303A.08, which requires this public announcement.

As previously disclosed, the RSUs and PRSUs were granted to Mr. Scully to compensate him for forfeiting a significant amount of value in equity and other benefits as a result of his departure from his prior employer and as an inducement for him to join Avon.

The RSUs vest and are settled ratably over three years and may vest earlier upon the occurrence of certain events. In the event of disability, death, or involuntary or constructive termination without cause, any outstanding RSUs would vest and be settled. The PRSUs vest and are settled following a three-year vesting period, subject to satisfaction by the company of performance measures. In the event of disability or death, or involuntary termination without cause on or after January 1, 2016, and provided that the company has satisfied the performance measures, a pro-rata portion of the PRSUs would vest and be settled after the end of the three-year vesting period.

About Avon Avon is the company that for more than 125 years has stood for beauty, innovation, optimism and, above all, for women. With nearly $9 billion in annual revenue, Avon products are sold through 6 million active independent Avon Sales Representatives worldwide. Avon products include color cosmetics, skincare, fragrance, and fashion and home, featuring such well-recognized brand names as Avon Color, ANEW, Avon Care, Skin-So-Soft, and Advance Techniques. Learn more about Avon and its products at www.avoncompany.com.

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SOURCE Avon Products, Inc.