Kozlowski and former CFO Mark H. Swartz are accused of stealing $150 million from the company by improperly forgiving company loans to themselves and awarding themselves unauthorized bonuses, reported The New York Times.
Kozlowski's testimony was interpreted by some observers as a sign of desperation by his defense attorneys.
Regarding the $25 million bonus, Kozlowski pointed out that when he learned he was eligible for a $60 million bonus, he suggested to Hampton that he and Swartz use a portion of their bonuses to repay loans, added the Journal.
Kozlowski and Swartz knew, or were reckless in not knowing, that they were obligated to disclose their improper KELP loans to investors in Tyco's annual reports on Form 10-K and proxy statements — but they failed to do so.
Kozlowski and Swartz knew, or were reckless in not knowing, that their related party transactions were not disclosed to investors in Tyco's annual reports filed on Form 10-K and proxy statements filed with the Commission, in violation of the federal securities laws.
Kozlowski and Swartz knew, or were reckless in not knowing, that their rent-free apartments, personal use of company aircraft and other perquisites were not disclosed to investors as executive compensation in Tyco's annual reports on Form 10-K and proxy statements, as required by the federal securities laws.
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