Search
 

The 2006 Alexander Hamilton Award In Corporate Governance

Tyco International Ltd. is the 2006 AHA winner in corporate governance.

By Staff Writer | Updated on November 01, 2006

CORPORATE GOVERNANCE WINNER………Among the ranks of corporate train wrecks that littered the American landscape over the past decade, Tyco International Ltd., the $40-billion diversified manufacturing and services conglomerate, was one of the most grandiose in terms of its characters and simultaneously most mundane in its underlying crimes. Not only were the top executives–notably CEO Dennis Kozlowski and CFO Mark Swartz–found to have been guilty of shamelessly raiding the corporate coffer of more than $150 million for their own personal gain, the company’s books and business were left tattered. In Kozlowski’s last weeks and the month following his departure, between January to July 2002, the stock plunged from a near record high of $60 to a record low of $7. For the company’s employees and shareholders and bondholders left holding company paper, that was only the half of it. Seemingly endless revelations–the purchase of a $6,000 shower curtain among the most memorable–of Kozlowski’s excess continued to drag Tyco through the mud even as efforts began to salvage what was left.

But where many of its peers like Enron Corp. and Worldcom Inc. failed to survive their own accounting scandals and the criminal depredations by top executives, Tyco has not only rebounded financially–it has become something of a model corporate citizen, with a gleaming new governance ethos, admirable transparency, and an internal ethos that rewards honesty and openness and refuses to tolerate misbehavior or deception. It has been a dramatic turnaround, perhaps unique in recent corporate history in its thoroughness, speed and consistency.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.