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In spring 2002, Tyco CEO Dennis Kozlowski and CFO faced arrest due to extravagant expenditures, including two million dollar toga parties and six thousand dollar shower curtains, alongside significant corporate theft estimated at six hundred million dollars. This prompted a change in leadership, with Eric Pell becoming the vice president for corporate governance from 2002 to 2007. Pell notes a lack of whistleblowers contributed to the scandal, highlighting a culture of intimidation within the company, particularly under Kozlowski, who had been with Tyco since 1976. The company's culture discouraged employees from raising concerns, allowing misconduct to go unchecked until the SEC intervened.