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In spring 2002, Tyco CEO Dennis Kozlowski and CFO faced arrest due to extravagant expenditures, including $2 million toga parties and $6000 shower curtains, along with significant corporate misconduct. The board of directors eventually recognized the company's issues, prompting new leadership, including Eric Pell, who served as VP for corporate governance from 2002 to 2007. Pell, now running a consulting firm, addressed INSEAD students, noting the absence of a whistleblower in this scandal. He emphasized that the intimidating corporate culture set by Kozlowski deterred employees from speaking out against misconduct, highlighting a pervasive lack of whistleblowing prior to the SEC’s investigation.