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    Case Study - Dennis Kozlowski

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    elliot pickard
    Dennis Kozlowski rose from an auditor to CEO of Tyco International from 1992 to 2002. As CEO, he rapidly grew the company through strategic acquisitions, but also drew controversy over his extravagant lifestyle, including Tyco allegedly paying for a $30 million apartment and $1 million birthday party. In 2005, Kozlowski was convicted of looting over $600 million from Tyco, though some questioned the charges and trial.

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    Case Study - Dennis Kozlowski

    Uploaded by

    elliot pickard
    58 views1 page
    Dennis Kozlowski rose from an auditor to CEO of Tyco International from 1992 to 2002. As CEO, he rapidly grew the company through strategic acquisitions, but also drew controversy over his extravagant lifestyle, including Tyco allegedly paying for a $30 million apartment and $1 million birthday party. In 2005, Kozlowski was convicted of looting over $600 million from Tyco, though some questioned the charges and trial.

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    Dennis Kozlowski rose from an auditor to CEO of Tyco International from 1992 to 2002. As CEO, he rapidly grew the company through strategic acquisitions, but also drew controversy over his extravagant lifestyle, including Tyco allegedly paying for a $30 million apartment and $1 million birthday party. In 2005, Kozlowski was convicted of looting over $600 million from Tyco, though some questioned the charges and trial.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    58 views1 page

    Case Study - Dennis Kozlowski

    Uploaded by

    elliot pickard
    Dennis Kozlowski rose from an auditor to CEO of Tyco International from 1992 to 2002. As CEO, he rapidly grew the company through strategic acquisitions, but also drew controversy over his extravagant lifestyle, including Tyco allegedly paying for a $30 million apartment and $1 million birthday party. In 2005, Kozlowski was convicted of looting over $600 million from Tyco, though some questioned the charges and trial.

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    © All Rights Reserved
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    Dennis Kozlowski: Living Large

    Dennis Kozlowski came from modest circumstances. He began his career at Tyco International in 1975
    as an auditor, and worked his way up the corporate ladder to become CEO in 1992. Kozlowski gained
    notoriety as CEO for the rapid growth and success of the company, as well as his extravagant lifestyle.
    He left the company in 2002 amid controversy surrounding his compensation and personal spending. In
    2005, Kozlowski was convicted of crimes in relation to alleged unauthorized bonuses of $81 million, in
    addition to other large purchases and investments.

    As CEO, Kozlowski was lauded for his risk-taking and the immense growth of the company. He launched
    a series of strategic mergers and acquisitions, rapidly building up the size of Tyco. During his first six
    years as CEO, he secured 88 deals worth over $15 billion. Strong growth was bolstered by a booming
    economy, and Tyco’s stock price soared as the company consistently beat Wall Street’s expectations.
    However, when the economy slowed, the company began to struggle.

    Allegedly, Tyco paid for Kozlowski’s $30 million New York apartment, as well as personal gifts and
    parties, including $1 million of a $2 million birthday party for his wife. After Kozlowski paid a $20 million
    finding fee to a board member without proper approval, and paintings invoiced for Tyco offices ended up
    in Kozlowski’s apartment (among other irregularities), Kozlowski was criminally charged with looting
    more than $600 million of assets from Tyco and its shareholders.

    While many questioned his lifestyle, others questioned the trial and conviction. Commenting on the case,
    civil rights lawyer Dan Ackman wrote, “It’s fair to say that Kozlowski…abused many corporate
    prerogatives… Still, the larceny charges at the heart of the case did not depend on whether the
    defendants took the money—they did—but whether they were authorized to take it.” Kozlowski asserted
    his innocence of the charges, stating, “There was no criminal intent here. Nothing was hidden. There
    were no shredded documents. All the information the prosecutors got was directly off the books and
    records of the company.”

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