Murty appointed as new Satyam CEO

HYDERABAD, INDIA: Scam-hit Satyam Computer Services on Thursday announced the appointment of A S Murty as the CEO and said it has received bank sanction for Rs 600 crore for meeting working capital requirements.

The Satyam Board which met here announced that it has appointed A.S. Murty as Satyam’s Chief Executive Officer, effective immediately.

Murty, polularly know as ASM  in Satyam is a veteran of 15 years. He brings to play a deep understanding of the organization, proven expertise in leading a Business Unit, overseeing Global Delivery, nurturing Customer relationships and spearheading the entire gamut of the Human Resources function.  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.” said Deepak Parekh, Member of the Board.

“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.”  added Mr. Parekh.

The Board also announced the appointment of Homi Khusrokhan and   Partho Datta as Special Advisors to the Board, to assist in Management and Finance areas, respectively. The Special Advisors, along with Boston Consulting Group will work pro bono and will assist the newly named CEO and the Board, in defining priorities and executing them, effectively.

These decisions are aimed at quickly stabilizing Satyam. The organization has visibly increased its focus on business continuity for its customers and confidence building amongst its associates (employees) and vendors.

“This is a unique opportunity to provide direction and guidance and I accept it with all humility. I have no misgivings about the enormity of the task in front of us, but together with my colleagues, I am confident we can accomplish the impossible. I look forward to working very closely with the Board, our Advisors and all Satyamites – to restore Satyam to its well-deserved glory. We will chart a precise and practical 30 – 60 – 90 day plan that will encompass and address the interests of all stakeholders.” Murty said

Commented Khusrokhan on his role : “Having led large organizations before, I expect this opportunity to be a singularly enriching experience and I look forward to contributing my might to this noble task”.

Referring to another significant development, the board today confirmed receiving bank sanctions for a total sum of Rs. 600 Crores (USD 130 Mn. approx) as a planned fund infusion towards working capital requirements. This funding, along with healthy collections, is expected to help the company tide over its financial challenges.  Satyam also reaffirmed that January 09 salaries (globally) and the fortnightly salary in Feb 09 (for its US based associates) have been met from its internal accruals.  (US payroll is run fortnightly for US based associates and has been so since company’s inception).

“Completing the complex financial restatement exercise including announcement of Q3 results and ensuring prudent financial operations will be the primary focus in the next few weeks” Datta added. He will be overseeing the financial operations of the company.

The Board confirmed that their key priorities and collective focus remain unchanged:

• Reaching out to key Customers & associates to reinforce their trust and confidence
• Asserting the financial position and restatement of Q3 results
• Evaluating long-term strategic options, in consultation with the advisors
• Assessing legal liabilities and dealing with them comprehensively
• Undertaking cost rationalization measures
• Resuming investments in identified areas

Wachtell, Lipton, Rosen & Katz (www.wlrk.com) have been appointed as Satyam’s lawyers to address the Class Action suits in US. Latham & Watkins have been lawyers to Satyam for over eight years and they will continue to support Satyam in its continuing dialogue with US SEC.

“I am confident that we are on the right track and we will be able to safeguard interests of our customers, associates, investors and other stakeholders” said Mr. Achuthan, Member of the Board, who chaired today’s meeting.

Brief of Murty

A S Murty (known as 'ASM') has been with Satyam since Jan 1994. He has seen Satyam growing from less than 100 associates to more than 50,000 associates, during this period. Currently, he is responsible for Delivery Excellence (in his capacity as Chief Delivery Officer) and also Leadership Development. As part of Leadership Development, ASM integrates Satyam's Real Time Leadership Center and Satyam Learning World.

He is also responsible for optimal utilization of Human Resources. Prior to this, he played several key roles (like Head - Human Resources, Head – Insurance vertical etc). ASM reviews all Asset Businesses (Support processes and Service Offerings) at Satyam. His mission is to enable ordinary people perform extraordinary tasks thru right orientation, process-centric approaches and continual learning.

An electrical engineer from National Institute of Technology (Warangal), ASM joined Tata Consultancy Services (TCS) after completing his Masters' degree (in School of Automation) from the Indian Institute of Science (Bangalore) in '81 and handled many key roles prior to joining Satyam.