06 February 2009 News

 

Satyam names chief executive

Troubled Satyam Computer Services has appointed A.S. Murty as chief executive officer. Murty, a 15-year veteran of the organization, begins immediately.

The company has been suffering since its then chairman, Ramalinga Raju, resigned on the 7^th January 2009, admitting that the company has been inflating its results. In a letter written to the board of Directors, Raju stated that: "The gap in the Balance Sheet has arisen purely on account of inflated profits over a period of last several years (limited only to Satyam standalone, books of subsidiaries reflecting true performance). What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years. It has attained unmanageable proportions as the size of company operations grew significantly."

Commenting on the new appointment, Satyam board member Deepak Parekh said: "Extensive board discussions over the past few weeks made it clear that the new CEO should come from within. ASM, an extraordinary executive with widespread support among all stakeholders-internal and external-will do an exceptional job leading Satyam at this critical juncture.

"ASM has a deep understanding of the organization and proven management expertise; he has led a business unit, overseen global delivery, nurtured customer relationships and spearheaded the entire human resources function. Moreover, he is extremely well respected for his ability to integrate teams and foster collective decision making-critical skills as Satyam continues to revive."

The board also appointed Homi Khusrokhan, the former managing director of Tata Chemicals, and Partho Datta, the former finance director of the Murugappa Group, as special advisors. These executives will work in the Satyam's Management and Finance areas, respectively. The special advisors, along with Boston Consulting Group, will work pro bono and help Murty and the board define and executive key strategies.