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Tyco CFO Resigns

Replacement for Swartz stepping down; will stay on as special advisor.
Stephen TaubMarch 30, 2005

Tyco International Ltd. announced that David J. FitzPatrick resigned on March 24 as executive vice president and CFO.

The conglomerate’s management noted in a securities filing that FitzPatrick’s voluntary termination was effective March 7, but that he would remain with the company through the end of the year, serving as a special advisor to the chairman and CEO with the same base salary and benefits.

Tyco’s website already lists its CFO as Christopher J. Coughlin, saying he has served in the position “since March 2005.” Coughlin joined Tyco after serving as COO at Interpublic Group. Before that, he spent six years as CFO of Pharmacia Corp.

Tyco added in its SEC filing that FitzPatrick’s employment will terminate before Dec. 31 if he works for another company, provides services to another company without Tyco’s consent, or fails or refuses to perform his duties under the agreement. The company also noted that FitzPatrick agreed to cooperate with investigations, administrative proceedings and litigation, without going into further details.

Under the agreement, FitzPatrick will receive a bonus for the 2005 fiscal year, which ends in September. For the 2004 fiscal year, FitzPatrick earned more than $4.4 million, including a salary of $765,000 and a bonus of $1.56 million.

FitzPatrick joined Tyco in September 2002, succeeding Mark Swartz, who resigned amid the company’s accounting and fraud scandal. Prior to joining Tyco, FitzPatrick was CFO at United Technologies, a post he had held since 1998. As reported in Sept. 2002, FitzPatrick received a signing bonus of about $13 million when he left UT and joined the troubled Tyco. He also received stock options valued at $12.6 million.

Before assuming the CFO’s role at United Technologies, FitzPatrick was vice president and corporate controller for Eastman Kodak Co. He also spent 18 years with General Motors Corp. FitzPatrick rose through the finance ranks at GM, culminating with his promotion to finance chief of the company’s Cadillac car division.

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