Enron : The New Investment Company

1532 WordsMay 2, 20177 Pages
The year was 1960, the man was Arthur J Rosenberg, and Tyco Company was the new investment company. Tyco began as a medical investment company and is solely responsible for developing the first laser beam used in medical procedures. By 1964 Tyco walked into the commercial aspect of investment. The company was booming and John Gaziano, became known as one of the top corporate managers in the world. . At this point in 1982 Tyco hugely expanded and was now involved in 3 areas of investment: Fire Protection, Electronics, and Packaging with an estimated value of $500 million. The 1990’s brought more success for Rosenberg and Tyco. Now being a global company, the name was changed to Tyco International and at this point was involved in over 30…show more content…
Also, over these few years the new CFO, Mark Swartz and general counsel, Mark Belnick both backed Kozlowski’s policies and received enormous annual salary increases. In 2001 due to Tyco’s acquisitions and financial success Kozlowski was named one of the top 25 corporate managers in the world. Within the first year of sales the stock had skyrocketed to $59.76 per share on the New York Stock Exchange. At this point the company was on an upswing. Over a 4 year span, there was a financial increase of over 50% and was now a billion dollar worldwide company. In early 2002, Kozlowski boldly stated,” I am extremely proud of Tyco’s performance. We have built a great portfolio of businesses and over the five years ended September 30, 2001 we have delivered earnings per share growth at a compounded annual rate of over 40% and industry leading operating profit margins in each business. During this period, we have increased annual free cash flow from $240 million in 1996 to 4.8 billion in fiscal 2001.” Coincidently and simultaneously, Kozlowski’s income increased from 8 million to 170 million dollars per year. The lavish lifestyle that he longed for from the Gaziano days was now his. From fancy cars to mega vacations greed was about to take over. The crumbling had begun. Kozlowski looked legitimate to the common eye. However, the invisible demise was in full swing behind closed doors. In 2002,
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