Editing Johnson Controls (section)

== Controversies ==

=== Merger with Tyco ===
On 25 January 2016, Johnson Controls announced that it would merge with [[Tyco International]] to create Johnson Controls International plc, a company headquartered in Cork, Ireland.<ref name="Globe">{{cite news|date=25 January 2016|title=Johnson Controls and Tyco to merge, to be based in low-tax Ireland|work=[[The Globe and Mail]]|agency=[[Reuters]]|location=[[Toronto]]|url=https://www.theglobeandmail.com/report-on-business/international-business/us-business/johnson-controls-to-merge-with-tyco/article28368145/|url-status=dead|access-date=9 March 2016|archiveurl=https://web.archive.org/web/20160125135652/https://www.theglobeandmail.com/report-on-business/international-business/us-business/johnson-controls-to-merge-with-tyco/article28368145/|archivedate=25 January 2016}}</ref> The merger was completed in September 2016.<ref>{{cite news|date=6 September 2016|title=Johnson Controls and Tyco complete merger|publisher=Johnson Controls|url=http://www.johnsoncontrols.com/media-center/news/press-releases/2016/09/06/johnson-controls-and-tyco-complete-merger}}</ref> Merging with the Irish company allowed Johnson Controls to become an Irish company itself, and enjoy sharply lowered corporate taxes, a process known as a tax inversion. This restructuring came at great expense of the workforce which was reduced by 52% between 2016 and 2022. The same occurred after the takeover of York International in 2005, which led to a reduction of 76% of the workforce between 2005 and 2016.<ref>{{Cite web|title=Johnson Controls: Number of Employees 2006-2021 {{!}} JCI|url=https://www.macrotrends.net/stocks/charts/JCI/johnson-controls/number-of-employees|access-date=7 February 2022|website=MacroTrends.net}}</ref>

[[Hillary Clinton]] condemned the company for wanting to escape United States taxes through the merger after having "begged" the government for financial help in 2008.<ref name="Gilbert">{{cite news|last=Gilbert|first=Craig|date=27 January 2016|title=Hillary Clinton slams Johnson Controls-Tyco deal|work=Milwaukee Journal Sentinel|url=http://www.jsonline.com/news/statepolitics/hillary-clinton-slams-johnson-controls-tyco-deal-b99659492z1-366736541.html}}</ref> The Johnson deal was termed "outrageous" by ''[[Fortune (magazine)|Fortune]]'' magazine.<ref>{{cite news|date=25 January 2016|title=You Won't Believe How Much Johnson Controls' CEO Is Making on the Tyco Deal|work=[[Fortune (magazine)|Fortune]]|url=http://fortune.com/2016/01/25/johnson-tyco-ceo-pay-molinaroli/|access-date=26 October 2016}}</ref> The firm estimated that it would save about [[United States dollar|US$]]150 million a year by avoiding American taxes.<ref>{{cite book|last=Reid|first=T.R.|title=A Fine Mess|date=4 April 2017|publisher=Penguin Press|page=2497}}</ref>

=== Tyco international scandal ===
In 2002, former [[chairman]] and [[chief executive]] [[Dennis Kozlowski]] and former [[chief financial officer]] Mark H. Swartz were accused of the theft of more than US$150 million from the company. During their trial in March 2004, they contended the board of directors authorized it as compensation.<ref>{{Cite news |date=5 December 2013 |title=Ex-Tyco CEO Kozlowski Says He Stole out of Pure Greed |work=Reuters |url=https://www.reuters.com/article/us-tyco-kozlowski-release-idUSBRE9B417820131205 |access-date=6 February 2022 }}</ref>

Kozlowski was tried twice. The first attempt was a ruled mistrial when one of the jurors was threatened by the public after being reported to have made an [[OK sign]] towards Kozlowski's lawyers.<ref>{{Cite web|title=Judge Declares Kozlowski Mistrial|url=https://www.forbes.com/2004/04/02/cx_da_0402tycomistrial.html|access-date=6 February 2022|website=Forbes }}</ref> Kozlowski testified on his own behalf during the second trial, stating that his pay package was "confusing" and "almost embarrassingly big," but that he never committed a crime as the company's top executive.

On 17 June 2005, after a retrial, Kozlowski and Swartz were convicted on all but one of the more than 30 counts against them. The verdicts carry potential jail terms of up to 25 years in state prison. Kozlowski and Swartz were each sentenced to no less than eight years and four months and no more than 25 years in prison.<ref>{{Cite news |agency=Associated Press|date=19 September 2005|title=Kozlowski sentenced in Tyco trial|url=https://www.denverpost.com/2005/09/19/kozlowski-sentenced-in-tyco-trial/|access-date=6 February 2022|newspaper=The Denver Post }}</ref> Then in May 2007, [[New Hampshire]] Federal District Court Judge [[Paul Barbadoro]] approved a class action settlement whereby Tyco agreed to pay $2.92 billion (in conjunction with $225 million by Pricewaterhouse Coopers, their auditors) to a class of defrauded shareholders represented by [[Grant & Eisenhofer P.A.]], Schiffrin, Barroway, Topaz & Kessler, and Milberg Weiss & Bershad.

On 17 January 2014, Kozlowski was granted [[parole]] from [[Lincoln Correctional Facility]] in New York City.<ref>{{Cite web |last=de la Merced |first=Michael J. |date=3 December 2013 |title=Kozlowski Is Granted Parole |url=https://dealbook.nytimes.com/2013/12/03/kozlowski-is-granted-parole/ |access-date=6 February 2022 |website=DealBook }}</ref>

=== Bribery charges in China ===
In 2016, Johnson Controls agreed to pay $14.4M to settle Foreign Corrupt Practices Act charges with the [[U.S. Securities and Exchange Commission|SEC]]. According to the SEC, employees of China Marine, a subsidiary of Johnson Controls, employed sham vendors to transfer $4.9M worth of bribes to Chinese government-owned shipyards, to win over businesses and enrich themselves.<ref>{{Cite news|date=11 July 2016|title=Johnson Controls pays $14.4 million to end SEC bribery probe |work=Reuters|url=https://www.reuters.com/article/us-johnson-controls-corruption-idUSKCN0ZR2J5|access-date=7 February 2022}}</ref><ref>{{Cite news|last=Dockery|first=Stephen|date=11 July 2016|title=Johnson Controls Settles China Corruption Case With SEC |work=Wall Street Journal|url=https://www.wsj.com/articles/johnson-controls-settles-china-corruption-case-with-sec-1468276763|access-date=7 February 2022|issn=0099-9660}}</ref>