Avon Products Inc. said Aug. 3 that CEO Sheri McCoy will leave the company in 2018, following pressure from activist investor Barington Capital Group LP over the company's lower-than-expected earnings results.
McCoy plans to step down as CEO and a director on March 31, 2018, Avon said in a statement. The company's board of directors has hired search firm Heidrick & Struggles to conduct a search for a new head executive.
"I look forward to continuing to drive the Avon business forward and to working with our leadership team to ensure a smooth transition," McCoy said in the statement.
McCoy's announcement comes after Barington Capital campaigned for her removal over the last two years, citing poor financial results at the cosmetics maker. McCoy has been Avon's CEO since 2012.
In a December 2015 letter, Barington announced its stake in Avon, then about 3% of the outstanding shares. As of March 31, Barington owned about 0.65% of Avon's outstanding shares, according to S&P Capital IQ.
The firm has since applauded changes that it believes will save the company money, such as relocating its headquarters from New York to the U.K.