Apple Board Member Under SEC Fire for Avon Mistakes

Could Steve Jobs' handpicked replacement for his mentor on Apple's Board of Directors be inept? That's the question some investors are raising following news that the Securities and Exchange Commission is investigating board member Andrea Jung's role as CEO of Avon Products.

According to the Wall Street Journal, the probe is tarnishing Jung's reputation and leaving investors with an impression "Avon has a pattern of operational missteps." Although it's unknown what actions are at the heart of the SEC's scrutiny, the cosmetic company junked its current sales targets, calling them "unreachable." At the same time, Avon's stock fell 18 percent.

While it is unclear how the investigation will impact Apple, Jung has been deeply involved in the tech giant's corporate culture. In 2008, Steve Jobs called her a "strong CEO and marketer." Later, Jung co-led the search to replace Bill Campbell, a mentor to Jobs. She continues to serve as the head of Apple's compensation committee.

The government is investigating a member of Apple's board of directors for her role as CEO of Avon. Andrea Jung, the only woman on the tech giant's seven-member board and part of setting Apple's compensation policy, is under scrutiny by the Securities and Exchange Commission, according to a Thursday report.

Jung "is fast losing her luster as a string of gaffes raises questions about her management skills," the Wall Street Journal reported. As the twin SEC investigations became public, Avon Products dropped previously set sales targets, describing them as "unreachable," according to the report. Investors seem more worried about what the Journal described as "a pattern of operational missteps" by Avon.

Jung has been involved in several internal issues within Apple. In December 2010, she co-led the company's search to replace Steve Jobs' mentor and Intuit CEO Bill Campbell. Jung also is in charge of Apple's compensation committee.

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