HR Heads Shift at Troubled Tyco

December 31, 2002 (PLANSPONSOR.com) - Human resources chief Patricia Prue at troubled conglomerate Tyco International Ltd., has been replaced, the company announced.

Prue, a key figuyre in the investigation of Tyco former chairman Dennis Kozlowski, is expected to get at least $2 million in severance, according to a Reuters report.

Reuters’ sources said Prue’s parting compensation will be several million dollars less than she initially sought.

Replacing Prue as senior vice president of human resources will be Laurie Siegel, a former Honeywell International vice president, Tyco said.

Tyco has said Prue worked closely with Kozlowski and knew the details of unapproved compensation plans he and former finance chief Mark Swartz allegedly used to enrich themselves, Reuters said. Prue also attended compensation committee meetings, according to Tyco filings.

In 2000, for example, Kozlowski had Tyco authorize nearly $96 million in unapproved bonuses for 51 employees to offset relocation loans for workers moving to Florida, Reuters reported. Forgiveness of some of the loans was offered to people who never moved and people who did not even have a Tyco mortgage, Tyco has admitted.

Several executives, including Prue, received cash bonuses and restricted shares that cost Tyco more than $55 million, Reuters said. Prue received a bonus and restricted stock worth about $737,000, according to Tyco filings with regulators.

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