Administration May 5, 2003

Avon Gets "Called" on Board Elections, Options

May 5, 2003 (PLANSPONSOR.com) - Many shareholder resolutions have fallen short this proxy season, but Avon shareholders snapped that streak last week.
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A shareholder resolution sponsored by Walden Asset Management that called for the annual election of directors drew the support of 80.5% of the shareholders, despite the opposition of Avon’s board of directors, according to a news release from Walden, which owns 77,000 Avon shares and sponsored the measure.   Walden is the socially responsible division of United States Trust Company of Boston.

A second resolution requesting that Avon expense options also passed, albeit with a narrower 56% tally.   That resolution was sponsored by The International Brotherhood of Electrical Workers Pension Fund.

Avon CEO Andrea Jung responded to the vote stating that there had been a “groundswell” supporting the election of directors, that the Board’s Governance Committee would review this issue with the utmost seriousness, and would report back to shareholders, according to Dow Jones.

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