Tyco Essay

621 WordsNov 20, 20143 Pages
Tyco International: Leadership Crisis When power comes into play it can cause many problems. Power is not always a good thing and can lead people to do things that are illegal. On September 12, 2002 power got the best of Dennis Kozlowski as he was seen on national television being handcuffed. He was arrested and charged with misappropriating more than $170 million from Tyco. He and Mark H. Swartz were accused of stealing more than $430 million through fraud selling Tyco stock and keeping information from shareholders. They were also charged with thirty counts of misconduct with included grand larceny, enterprise corruption and falsifying business records. Kozlowski during his time with Tyco became the second highest paid CEO. Kozlowski was known for having an aggressive approach to business and pursing a lavish lifestyle. He had many problems with former CEO and employees. His urge for power and success came from his friend and mentor, Joseph Gaziano. Kozlowski became impressed by Gaziano lavish lifestyle of jets, vacations, cars, and memberships. Gaziano’s lifestyle showed Kozlowski a world of power and getting whatever you want. After Gaziano passed away from cancer, Kozlowski slowly came to power of his own. Kozlowski became the president of Grinnell Fire Protection. Well in this position he eliminated 98 percent of the paper work and cut manager’s salaries. He was all about compensation. He became in control over all possible earning. He became according to a Business Week article “corporate tough guy, respected and feared in roughly equal measure.” He continued to get higher and higher up at Tyco and soon became the president and CFO of Tyco. He became very aggressive with the way he did business. He went ahead and required $360 million from Wormald International in which Fort wasn’t happy with. He was able to convince many people that was he was doing

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