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He also forced partners and distributors to commit in writing to uphold IBM's strict ethical standards. In 2009 he called off the $7 billion acquisition of Sun Microsystems in part due to Sun's egregious goldenparachutes. As Palmisano built IBM into the world's leading information technology company, its competitors dithered.
After Kozlowski was convicted in 2005, I began including case studies about the Tyco corporate scandal in the business ethics classes I taught. The directors needed Kozlowski to be convicted for a number of reasons, not the least of which was a half billion dollar goldenparachute the company would owe Kozlowski if he was found not guilty.
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