Shares of Avon Products (AVP) are in focus in morning trading after the cosmetics company named a Unilever (UN, UL) veteran as its new chief executive officer. The CEO appointment comes amid calls from activist investors for the company to explore strategic alternatives, including a possible sale.

UNILEVER EXECUTIVE TO BECOME AVON CEO: Avon Products this morning said Jan Zijderveld will succeed Sheri McCoy as its CEO, effective immediately. Zijderveld will also serve on the company's board of directors. Zijderveld joins Avon after a 30-year stint at Unilever, most recently serving as a member of Unilever's executive committee and as president of the company's European business. "On behalf of the Board of Directors, we are delighted to welcome Jan to Avon, who we unanimously appointed from a very strong list of seasoned global executives," Avon Chairman Chan Galbato said in a statement. In August 2017, Avon announced that McCoy would step down as CEO and as a director on March 31, 2018. Avon's board retained executive search firm Heidrick & Struggles to assist in identifying McCoy's successor.

WHAT'S NOTABLE: Zijderveld's appointment as CEO comes about a week after a group of Avon shareholders led by Shah Capital, Barington Capital Group and NuOrion Partners, which collectively beneficially own approximately 3.5% of Avon's outstanding common stock, sent a letter to the board urging it to retain a financial advisor to explore all strategic alternatives to maximize shareholder value, including a sale of the company in whole or in parts. The investors said that they were "extremely disappointed with the deteriorating operating and share price performance that has occurred under the stewardship of the current board" and that they have lost confidence in the ability of Avon's current board to create "meaningful" long-term value for its public shareholders, and "sees no reason why shareholders should continue to wait for a turnaround from a board that has overseen a tremendous destruction of shareholder value." The shareholder group believes that Avon would be "highly attractive" to buyers due to its well-known brand, a "vast" product offering, "strong" market positions and its 6M direct sales representatives. In May 2017, Barington Capital and NuOrion Partners called on Avon to begin a search for a new CEO, saying, "During more than five years as CEO, Sheri McCoy has overseen a tremendous destruction of shareholder value." In November, Avon reported third quarter results that missed analysts' expectations. The company also announced that it expected FY17 results to come in below guidance.

PRICE ACTION: In morning trading, shares of Avon Products are off earlier highs and are now fractionally lower at $2.35.