Moving to mend its image, troubled conglomerate Tyco ( TYC) Thursday said financial chief Mark Swartz would step down once the company names a replacement.

The move comes as new CEO Edward Breen struggles to win back investor confidence in the company. Despite the spinoff this month of its CIT ( CIT) financial arm, Tyco continues to labor under investor doubts about its accounting and its liquidity. Swartz, a holdover from the widely discredited previous management, was seen by some observers as a potential roadblock to reform.

In a scandal-sodden summer on Wall Street, Tyco has served as a lightning rod for much of what investors have come to abhor about corporate America. The company's stock has lost 80% of its value this year amid a swirl of accounting and disclosure questions that slashed the company's credibility on Wall Street. CEO Dennis Kozlowski, who built the company into a titan through hundreds upon hundreds of acquisitions, stepped down this spring amid charges of tax evasion. The company and its executives are the subject of a number of government probes.

In a letter to Tyco workers released after the bell Thursday, Breen said the company would demand "an absolute commitment to integrity and trustworthiness throughout the organization." He also promised that "we will establish Tyco as a leader in creating and enforcing the best corporate governance practices."

The company also named Penn professor Michael Useem to oversee the remake of its corporate governance practices. Breen said Useem will undertake a study of the best practices and recommend appropriate changes for Tyco's board and management.

Shares of Tyco were falling 7.9% to $11.80 on the Instinet platform after the close of regular trading. The stock ended the regular session at $12.81.

Swartz's move comes a week after the company named Breen, a former Motorola ( MOT) exec, to fill Kozlowski's spot. Thursday evening, Tyco also said Irving Gutin, the company's general counsel, will retire. Like Swartz, he will stay on until a replacement is named.