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Tyco is considering moving its headquarters from Bermuda to the U.S. as part of the company's drive to end doubts about its transparency and corporate governance. Jack Krol, the group's lead director, said that Tyco "had to find the justification economically" for its incorporation in Bermuda, which dates from 1997. Tyco confirmed the new management under Edward Breen, chief executive, was "taking a fresh look" at the issue of where the company should be registered but said it had "no current plans to make any change".
Tyco's incorporation in Bermuda has added to concerns that the conglomerate evaded both tax and regulatory scrutiny under Dennis Kozlowski, the former chief executive who was indicted last month on corruption charges. Tyco incorporated on the Atlantic island five years ago following its reverse takeover of ADT, the security and alarm company already registered there.
Mr. Krol said reincorporating elsewhere would help remove any lingering concerns about the company's accountability, following allegations that Mr Kozlowski and Mark Swartz, former chief financial officer, looted more than U.S. $170 million from the company. But Mr Krol said that if a study of the issue found that it would cost Tyco much more to register in the US, the group would not leave Bermuda. "You don't want to cut your nose off to spite your face," he said. (Financial Times)
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