Chairwoman and CEO Andrea Jung of beauty products seller Avon Products Inc., received a $9.9 million pay package in 2010, including a periodic performance bonus, according to an Associated Press analysis of a filing the company made with the Securities and Exchange Commission.
Jung, 52, received the same base salary of $1.38 million as in 2009, and she didn't get stock awards or an annual bonus, according to the Tuesday filing. But her total package rose 41 percent from 2009, largely because it was time for a long-term performance-based bonus that Avon pays top executives every three years. Jung's was $5.4 million.
She also received option awards valued at nearly $3 million on the date they were granted plus other compensation of $189,968 including $80,107 for a car service.
In 2009, Jung and other executives received annual performance-based bonuses. Hers was $3.04 million. Some executives also received them in 2010, at lower levels than in 2009, along with their long-term performance bonuses. But Jung said in the filing that she should not get an annual performance bonus for 2010.
Avon's 2010 net income of $606.3 million fell 3 percent from 2009, though its revenue rose 6 percent to $10.86 billion. The company's fourth-quarter results were particularly disappointing: Its net income fell 15 percent, hurt by service disruptions in Brazil and weak performance in Russia, two of its largest markets.
Avon's shares fell about 8 percent during the year.
In the filing, Avon, whose brands include Skin So Soft and Mark, said 2010 was "a tale of two halves" because its revenue growth slowed dramatically in the second half of the year. Revenue rose 11 percent in the first part of the year but just 3 percent in the second half.
When Avon's sales were slower than expected, that left it carrying more inventory, which in turn hurt its profit.
"We are addressing execution challenges that dampened our second-half 2010 performance," Avon said in a statement.
Avon's annual shareholder meeting is set for May 5 in New York.
The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don't include changes in the present value of pension benefits, making the AP total different in most cases from the total reported by companies to the Securities and Exchange Commission.