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Sacked as CEO, but getting $1M a year as chairman

Jennifer Graylock / ASSOCIATED PRESS

Avon's Chairman and CEO Andrea Jung.

Avon announced earlier this week that long-time CEO Andrea Jung will be stepping down from her position as of January. But don't weep for her just yet. She'll be getting a cool $1 million a year in salary as executive chairman, the company said Friday in a regulatory filing.

And that's just her salary. On top of the $1 million a year, she's eligible for an annual bonus that could hit as much as 100 percent of her annual salary, depending on her performance. She can also participate in Avon's three-year long-term incentive program (70 percent restricted stock, 30 percent cash), which could net her an annual target award equal to 400 percent of her annual base salary starting after 2012. 

Avon said Wednesday it had begun a search to replace Jung, who will aid the board in that quest. Jung, who has been Avon's CEO since 1999, has attracted the ire of investors because of slumping sales and a federal probe about whether the company broke bribery laws overseas.