When your CEO has gone insane/Avon to Cut 2,500 Jobs, Move to the UK

Sometimes you wake in the middle of the night with a bad dream as a serious event, activist HF manager/Sometimes you get a bad feeling in your stomach as open the website of the WSJ, FT or NYT.

If you were seriously long Avon stock, you must have barfed your head off upon reading the above headline in today's WSJ.

The worse part of the whole upchucking experience is not the clean-up session before your wife and kids get up, it is the fact that this is - out of the box - pure insanity from a corporate, employee, investor or Uncle Sam's point of view.

Why?

 1. The natural market for low-end cosmetics is not the UK or Western Europe. London is ungodly expensive, the expatriate packages will eat up your potential tax savings. You will have to restructure every corner of your empire globally, why not invest this cash in expanding your business?

2. The entire company - ex-operations - is in the US in NYC, please fist consider a move to NJ or CT. Even better move from NYC to Vero Beach, Florida and focus on building a business in Latin America.

3. Even if this is a tax driven (probably) decision, "cheating" the US Treasury, your current employees, suppliers, partners around the US where your offices, logistics and plants are located is completely unethical. You are not positively "impact" investing in people's lives, your stakeholder communities or the USA.

Action Plan

1. Fire the Independent and Dependent Members of the Board of Directors, put this plan on ice. Carl Icahn, where are you when we need you most, albeit after Grand Harbor in Vero Beach, Florida, where equal, if not greater insanity reigns. 

2. Hire new management, or let REP Consulting advise on corporate strategy and help pick new managers.

3. President Obama, get off your backside and in gear, work on the taxation of US companies (NOW) domestically and internationally, while you watch Hillary go down in flames and The Donald self-destruct. Put Joe Biden in charge of this "Search and Destroy" mission, and he will miracle it done before the Presidential Election and be the next President, thank God, somebody at the helm with COMMOB SENSE.

Two Birds killed with one stone.

Rondal Eric Powell, Managing Partner, REP Consulting with offices in Frankfurt, Germany and Vero Beach, Florida