Leo Dennis Kozlowski[1] (born November 16, 1946) is a former CEO of Tyco International, convicted in 2005 of crimes related to his receipt of $81 million in unauthorized bonuses, the purchase of art for $14.725 million and the payment by Tyco of a $20 million investment banking fee to Frank Walsh, a former Tyco director.
He served more than six and a half years in New York state prisons, and was released in 2014. Separately, Tyco filed suit against Kozlowski and prevailed, with the court finding that the $500 million in compensation and benefits he received during his time of disloyalty, between 1997 and 2002, were forfeited back to the company under New York's "faithless servant" doctrine.
Early life
Kozlowski was born in Newark, New Jersey. His mother, Agnes (née Kozell), worked for the Newark Police Department and as a school crossing guard, and his father, Leo Kelly Kozlowski, worked for the Public Service Transport.[2][3] His parents were second-generation Polish-Americans.[4] Kozlowski attended Seton Hall University, a Catholic university.[5]
Tyco International
Kozlowski joined Tyco in 1975, becoming CEO in 1992. With Kozlowski at the helm, Tyco massively expanded during the late 1990s.
In 1999, Tyco began shifting the company's headquarters operations from Exeter, New Hampshire, to Boca Raton, Florida, where Kozlowski had a home. At one point, 1,650 Tyco employees were based in Boca Raton.[6]
Although Kozlowski was one of America's highest-paid executives, Tyco spent millions to benefit him, financing personal extravagances and secretly forgiving loans.[7]
The company consistently beat Wall Street's expectations and through a series of strategic mergers and acquisitions, ushered in a new era of mega-conglomerates. Kozlowski left Tyco in 2002, amid a controversy in regard to his compensation package.
Scandal, trial, and conviction
Kozlowski was tried twice. The first attempt was a ruled mistrial when one of the jurors was threatened by the public after being reported to have made an
Personal life
Kozlowski has been married three times, and has grandchildren.[25] Kozlowski became notorious for his extravagant lifestyle, supported by the booming stock market of the late 1990s and early 2000s; allegedly, he had Tyco pay for his $30 million New York City apartment which included $6,000 shower curtains and $15,000 "dog umbrella stands".
Tyco paid $1 million (half of the $2 million bill) for the 40th birthday party of Kozlowski's second wife, Karen Mayo Kozlowski. The extravagant party, held on the Italian island of Sardinia, featured an ice sculpture of Michelangelo's David urinating Stolichnaya vodka and a private concert by Jimmy Buffett. In a camcorder video, Dennis Kozlowski states that this party will bring out a Tyco core competency – the ability to party hard. Subsequently, this shareholder meeting/birthday party became known as the Tyco Roman Orgy.[26]
Dennis married Karen Mayo in Antigua in May 2001; they maintained a mansion in Boca Raton.[6]
Further reading
- A Hill and A Michaels, 'Paw taste condemns Kozlowski: Report says Tyco bought $15,000 dog umbrella stand for chief's apartment' (September 18, 2002) Financial Times
External links
References
- Dennis Kozlowski.biography Biography.com, A+E Networks, retrieved July 31, 2012^
- Business Week McGraw-Hill, 2002^
- International directory of business biographies St. James Press, 2005^