Replacing a Cosmetics Queen

WHEN 77-YEAR-OLD MARY Kay Ash suffered a stroke in February, many wondered whether the giant cosmetics company had chosen a successor to carry on her work. While the prognosis for Ash’s recovery was good, all companies founded by a strong, charismatic personality eventually must deal with the transition of leadership when the founder is ready to retire or move on to other things.

Dwight Smith, company spokesman, points out a little-known fact: Ash, as chairman emeritus, does not have day-to-day operating responsibilities at Mary Kay. Since 1990, John Rochon, chairman of the board, has been running the company, which has annual sales of $1.7 billion at the retail level.

“The transition would be in the inspirational role Mary Kay has filled from the start,” Smith says. Since she started her cosmetics company in 1963 with a little more than $5,000, Ash has been a dynamo at providing motivation and encouragement to her sales force, which now totals 425,000 (about 200 are men) and has spread around the world. That same charisma that has made her so successful could prove hard to replace. Is the company grooming someone to take over that role if Mary Kay decides to step down?

“There is no Mary Kay Junior waiting in the wings,” Smith says. “There are roughly 90 national sales directors around the country. Mary Kay views it that she would be succeeded by them, each operating in their own areas, Many of these women are strong, charismatic figures.”