Avon Products announced today that Andrea Jung will step down as executive chairman and board member, effective December 31, 2012. The company’s new CEO will be Sheri McCoy. Jung, however, will continue to have ties with Avon, in her new role as senior advisor to the Board, beginning on January 1, 2013.

Fred Hassan, currently lead independent director, will succeed Jung next year and assume the position of non-executive Chairman on January 1. Hassan is a managing director and partner at Warburg Pincus and the former Chairman and Chief Executive Officer of Schering-Plough Corp.

“My decision reflects the successful transition to new leadership. I believe the end of the year is the appropriate time for me to shift my role from Executive Chairman to senior advisor,” said Jung. “It has been a great privilege to serve the company over the past two decades, most notably the millions of Avon Representatives and thousands of Associates around the world. I look forward to supporting the Avon Board of Directors.”

Jung continued, “Fred’s experience and leadership on the Avon Board, and his unusual record of leading turnarounds at world-class companies over his distinguished career make him ideally suited to take on the independent Chairman role.”