Case Study

Tyco: Driven by growth, driven to a fall

23 pages
February 2005
Reference: IMD-1-0218

Under Kozlowski’s (CEO) leadership Tyco embarked on an acquisition spree that produced one of America’s largest conglomerates. Kozlowski’s power and wealth grew in tandem. But this was not enough. Kozlowski’s ambition was for Tyco to become the new GE. At the same time, he, and his CFO, Swartz, looted the company of millions of dollars. Expansion into financial services and investigations by the SEC into Tyco’s aggressive accounting practices finally brought the company to the brink of collapse. A whole suite of court cases ensued as shareholders suffered an 80% loss.

Keywords
Conglomerate, Executive Compensation, Board Oversight, Fraud, Greed
Settings
United States of America
2002
Type
Published Sources
Copyright
© 2005
Available Languages
English
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