By Kristin Jones
Avon Products Inc. (AVP) has named Jeff Benjamin as general
counsel, ending a search it began in July to fill a crucial role as
it faces a federal investigation into bribery allegations.
Mr. Benjamin retired from Novartis Corp., the U.S. headquarters
of Novartis AG (NVS, NOVN.VX) at the end of 2011. Novartis Corp.,
formerly known as Ciba-Geigy Corp., Mr. Benjamin held a variety of
general counsel positions from 1996 through 2011, and also served
for most of that time as chief ethics and compliance officer.
Mr. Benjamin is replacing Kim Rucker, who left to take an
executive position at Kraft Foods Inc. (KFT). He will also serve as
senior vice president.
The appointment comes as Avon has entered talks with the U.S.
Justice Department and U.S. Securities and Exchange Commission to
settle a long-running investigation into the possibly bribery of
foreign officials. The messy federal probe, which examines whether
Avon may have paid bribes to officials in China and elsewhere in
violation of the U.S. Foreign Corrupt Practices Act, has been a
black mark on the company's reputation as it stacks up legal
costs.
"Creating a productive work environment that continues to
enhance our compliance culture is a priority," said Chief Executive
Sheri McCoy. "Jeff's proven commitment to business ethics and law
compliance and his credibility within and outside the legal
profession will be a tremendous asset for Avon."
Mr. Benjamin's career spans more than 40 years, and he
represented Ciba and Novartis as they faced litigation and
government investigations.
Avon is undergoing a massive overhaul as it tries to stem a
trend of falling profits. It reported in August that its
second-quarter profit fell 70%.
Shares were up fractionally to $16 in after-hours trading.
Through the close, the stock was down 9.1% so far this year.
Write to Kristin Jones at kristin.jones@dowjones.com
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