There are a lot of people losing out in this market (as we mentioned earlier today.) But one person who might be winning is the former Tyco chief, Dennis Kozlowski.
While Dennis Kozlowski sits in jail wondering why his crime was so egregious, he can take small comfort in the fact that his retirement package is fattening. Of less comfort is the fact that he might not be able to access it, as the accounts “are in dispute by the Company.”
Footnoted: In footnote #16, which is on pg. 150 of the 10K, Tyco discloses that the accrued benefit obligations for Kozlowski’s executive retirement, which he theoretically gets to collect when he turns 65, grew to $76 million for the year ended Sept. 28, 2008. That’s an increase of $5 million or a market-beating 7% (compared with the 20% the S&P 500 lost during the same period). Swartz did slightly better with $36 million turning into $39 million — an 8.3% return.
Of course, it’s not really clear that the two men will ever get a chance to collect. As Tyco notes in the footnote, it may be accounting for the money, known as “Executive Retirement Arrangements”, but “amounts owed to Messrs. Kozlowski and Swartz under the ERA are in dispute by the Company.” Still, given the current climate, it’s not a bad return.
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