Avon names Sherilyn McCoy CEO, replacing Andrea Jung

— -- In a bid to clear up some corporate blemishes, Avon Products has named Johnson & Johnson veteran Sherilyn McCoy as its new CEO.

On April 23, McCoy will take the top post from Andrea Jung. Jung, the first female CEO in Avon's 126-year history, had the job since 1999. She becomes executive chairman.

Jung, 53, helped Avon to expand internationally and increased its support of women's causes such as the fights against breast cancer and domestic violence. In recent years, though, she had to deal with high-profile financial and legal issues, such as declining U.S. sales, falling stock value and an investigation into the alleged bribery of foreign officials.

McCoy, 53, wasn't available for comment but in a written statement called Avon "a great company with an iconic brand and so much clear potential."

She spent three decades at pharmaceutical and consumer products firm J&J, most recently as a vice chairman. McCoy oversaw 60% of the company's revenue and had responsibility for brands such as Neutrogena, Aveeno and Lubriderm, according to the Avon statement. She was No. 10 in Fortune's 2011 list of the 50 Most Powerful Women in Business.

McCoy will join Avon just weeks after the company rejected an unsolicited takeover bid from rival Coty. On April 2, Coty said it had put forth an estimated $10 billion proposal for Avon.

Avon called the price of $25.23 per share too low and said the board "remains confident in the company's stand-alone prospects."

With the leadership change, Avon is signaling that it doesn't need to be bought, says Barclays Equity Research analyst Lauren Lieberman.

"Unless something emerges in Ms. McCoy's employee agreement (i.e., that she will receive an inordinate payout in the event of a change in control), we think Avon's board is making a definitive statement on their view that it can turn around its business without the help of an outside suitor," Lieberman said in a report Monday.

Yet BMO Capital Markets analyst Connie Maneaty says a possible combination with another firm shouldn't be ruled out.

"We are pleased that (Avon) has been able to attract such an experienced CEO, but don't think that the appointment necessarily precludes a merger," she said in her Monday report.

Maneaty says the leadership change is positive, but she expects the stock — which has already swung from $16.09 to $31.60 in the past 52 weeks — to remain volatile. Avon's stock closed at $22.69 on Monday, down 3%.

McCoy's emergence at Avon comes less than two months after she was passed over for the top spot at Johnson & Johnson, which announced in February that Alex Gorsky would become CEO later this month.