An Enterprise Corruption : Tyco International Ltd

1092 Words May 3rd, 2015 5 Pages
Brian Mowery
Research Paper
April 19, 2015
An Enterprise Corruption
Tyco International Ltd. is a security systems company founded in 1960 by Arthur J. Rosenberg. The company is incorporated in Switzerland with U.S. headquarters in Princeton, New Jersey. It is currently composed of two major business segments: Secu-rity Solutions and Fire Protection. For fiscal year 2001, the company had revenue of $36 billion and roughly 240,000 employees worldwide. Tyco shares closed at a high of $59.76 on the New York Stock Exchange in December 2001. After the corporate fraud scandal of 2002, the company stood $28 billion in debt and its shareholders had lost over $90 billion, more than 80% of Tyco’s peak market value.
After being founded in 1960, Tyco Laboratories did mostly experimental work for the U.S. government and had two segments: Tyco Semiconductors and the Materials Research Laboratory. In 1964, the company went public and began expanding (mostly by acquisitions), acquiring 16 other businesses over four years. Tyco expanded even fur-ther in the 1970’s. They became listed on the New York Stock exchange in 1974 and by 1979 had a net worth of approximately $140 million. In 1975, future CEO Dennis Kozlowski joined Tyco as an assistant controller.
Kozlowski rose through the ranks as an “exceptionally enterprising and effective manager” , eventually being promoted to President and Chief Operating Officer (COO) in 1989, CEO in 1992, and chairman of the board in 1993.…
Open Document