Satyam Board names AS Murthy as Chief Executive Officer
Appoints Mr. Homi Khusrokhan and Mr. Partho Datta as Special Advisors to Board; Move aimed at strengthening management and financial areas
HYDERABAD, India, Feb. 05, 2009: Satyam Computer Services Limited (NYSE: SAY), a global consulting and information technology services provider, today said that its full Board met over two days (4th and 5th Feb 2009) along with their Advisors. This was the fifth meeting of the Board (in less than a month) and was chaired by Mr. Achuthan, former Presiding Officer of Securities Appellate Tribunal and Member of the Board.
The Board announced that it has appointed Mr. A.S. Murty as Satyam’s Chief Executive Officer, effective immediately.
“Mr. Murty (‘ASM’) is a Satyam veteran of 15 years, who has been in its forefront since Jan 1994. 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 Mr. 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 Mr. Homi Khusrokhan and Mr. 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.” Mr. Murty said
Commented Mr. 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” Mr 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.
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