Feb 6, 2009

Business - Satyam veteran appointed new CEO

HYDERABAD: Satyam’s Board of Directors filled the vacuum at the top by appointing company veteran A.S. Murty, the global delivery head, as Chief Executive Officer here on Thursday.
It named Homi Khusrokhan, former Managing Director of Tata Chemicals, and Partho S. Datta, former Director of Finance in the Murugappa Group, as special advisors to the Board.
The Directors’ attempt to fortify the company’s finances bore fruit with banks sanctioning Rs. 600 crore for the working capital. This infusion of funds and healthy collections would help the company tide over its financial challenges, they noted.
While Mr. Khusrokhan would assist the Board in management, Mr. Datta would extend his services in the realm of finance. They, along with the Boston Consulting Group, would work ‘pro bono’ and assist the new CEO and the Board in defining priorities and in executing them effectively.
The Board, which met for two days on Wednesday and Thursday along with the newly-appointed advisors, said Mr. Murty’s appointment came into effect immediately. The meeting was chaired by C. Achuthan.
Board member Deepak Parekh said: “Mr. Murty [ASM] is a Satyam veteran of 15 years, who has been in its forefront since January 1994. He is well respected for his ability to effectively integrate the team and enable a collective decision making, which will be critical as Satyam moves into its revival phase. In our interactions over the past few weeks, we are convinced that Satyam needs an internal leader to steer it at this critical juncture and ASM has the required bandwidth and support.”
A press release quoted Mr. Murty as saying that the exercise of business continuity and confidence building among employees was stepped up. “We will chart a precise and practical 30–60–90-day plan that will encompass and address the interests of all stakeholders,” he added.

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