LONDON, Feb. 5, 2018 /PRNewswire/ — Avon Products, Inc. (NYSE: AVP) (“Avon”) announced today that it entered into a contract of employment with Avon’s newly appointed Chief Executive Officer, Jan Zijderveld, which provides for, among other things, the grant of inducement equity awards. Such inducement equity awards will be made outside the terms of Avon’s 2016 Omnibus Incentive Plan, in reliance on the exemption under NYSE Listed Company Manual Rule 303A.08.
As previously disclosed, as an inducement for Mr. Zijderveld to join Avon, Avon will provide Mr. Zijderveld sign-on equity awards consisting of (i) 600,000 service-vesting restricted stock units (“RSUs”), which will cliff-vest on the third anniversary of the grant date, and (ii) 600,000 performance-vesting restricted stock units (“PRSUs”), which will vest based on service and performance conditions over a three-year period. In addition, in connection with Avon’s practice of providing long-term incentive program awards annually to key employees, Avon will grant Mr. Zijderveld in early 2018 long-term incentive program awards that have an aggregate target award value of £2,550,000. Of such value, (x) 40% will be delivered through premium-priced stock options (“Options”) to acquire shares of Avon’s common stock at a per share exercise price equal to 125% of the per share closing sales price on the date of grant, which will vest in equal annual installments over three years, and (y) 60% will be delivered through PRSUs, which will vest based on service and performance conditions over a three-year period.
Upon certain qualifying terminations of Mr. Zijderveld’s employment, (i) a prorated portion of the RSUs will vest, (ii) a prorated portion of the PRSUs will vest (subject to satisfaction of performance measures) and (iii) any vested Options will remain exercisable for 90 days.
About Avon Products, Inc.
Avon is the Company that for 130 years has proudly stood for beauty, innovation, optimism and, above all, women. Avon products include well-recognized and beloved brands such as ANEW, Avon Color, Avon Care, Skin-So-Soft, and Advance Techniques sold through nearly 6 million active independent Avon Sales Representatives.
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SOURCE Avon Products, Inc.