Wednesday, October 4, 2006
Former Tyco executives L. Dennis Kozlowski and Mark Swartz were sentenced to 8 1/3 years to 25 years in prison. (see here). According to the Wall Street Jrl here, they argued on appeal that their sentences were excessive. They also argued that the moneys they received were legitimate under their executive compensation plan.
Although one might think that their sentencing argument was strengthened by the recent reductions seen for Andrew Fastow and Jamie Olis, the reality is that the Kozlowski and Swartz cases are in the New York State system, a system very different from the federal system. The more interesting argument will be whether as a matter of law the items they received were executive compensation.