Satyam Names CEO and Special Advisors, and Secures Financing
February 05 2009 - 10:04AM
PR Newswire (US)
-- Longtime Satyam executive A.S. Murty to lead organization,
effective immediately HYDERABAD, India, Feb. 5
/PRNewswire-FirstCall/ -- Satyam Computer Services Limited
(NYSE:SAY), a global consulting and information technology services
provider, today appointed A.S. Murty as chief executive officer.
Murty, a 15-year veteran of the organization, begins immediately.
"Extensive board discussions over the past few weeks made it clear
that the new CEO should come from within," said Satyam Board Member
Deepak Parekh. "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 experienced
executives will lend their expertise to 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. The critical
appointments have further stabilized Satyam, which is recovering
from an accounting crisis that came to light a month ago. In that
time, the organization has worked hard to increase its focus on
business continuity and restore associate and vendor confidence.
"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 I am confident Satyam can
accomplish great things -- now, and well into the future," Murty
said. "I look forward to working very closely with the board, our
advisors and all Satyamites, to restore Satyam to its well-deserved
glory. Our immediate priority is to chart precise and practical
30-, 60- and 90-day plans that encompass and address the interests
of all stakeholders." In another significant development, the board
confirmed that it has secured approximately $130 million in
financing, which will be directed toward working capital
requirements. The loan, along with healthy collections, will help
the company manage several short-term financial challenges. Satyam
also reaffirmed that January salaries (globally) and mid-February
salaries (US-based associates) have been met from internal
accruals. (US-based associates are paid every two weeks.). In the
next few weeks, Datta will focus on completing the complex
financial restatement exercise, including announcement of third
quarter results, and ensuring prudent financial operations.
Khusrokhan will lend his expertise to the board, the priorities of
which remain: -- Reaching out to customers and associates to
reinforce their trust and confidence -- Asserting the financial
position and restating Q3 results -- Evaluating long-term strategic
options -- Assessing and managing legal liabilities -- Undertaking
cost rationalization measures -- Resuming investments in identified
areas From a legal perspective, Wachtell, Lipton, Rosen & Katz
(http://www.wlrk.com/) will defend Satyam against class action
suits in the U.S. Additionally, Latham & Watkins, a firm that
has worked with Satyam for more than eight years, will continue its
dialogue with the US Securities and Exchange Commission on the
organization's behalf. The two-day meeting -- the board's fifth in
less than a month -- was chaired by Board Member C. Achuthan, the
former presiding officer of the Securities Appellate Tribunal. "I
am confident we are on the right track and can continue to
safeguard interests of our customers, associates, investors and
other stakeholders," he said. Biographies A.S. Murty Satyam's new
chief executive officer was promoted from Head of Satyam's
Leadership Development Group. In that role, A.S. Murty (known as
ASM) developed strategies and programs to enhance associate
delight. The Real Time Leadership Centre, the Satyam School of
Leadership, the Satyam Learning Centre and Business Facilitation
Group were under his purview. Additionally, he was responsible for
Satyam's Global Delivery and information security; oversaw Human
Resources; and is a member of the Apex Committee. The 15-year
Satyam veteran joined as head of delivery and led the company's
largest business unit before assuming responsibility for
associate-related programs a decade ago. Before Satyam, ASM worked
with Tata Consultancy Services (TCS) for 12 years. Among his many
accomplishments at Satyam, ASM led efforts to more closely align
the company's HR organization with its business goals. Before
becoming CEO, he was transforming Satyam's approach to leadership
development and talent management. ASM has a Masters Degree in
computer science from the Indian Institute of Science in Bangalore
and a Bachelors Degree in electrical engineering from the Regional
Engineering College in Warangal, India. Partho S. Datta Partho S.
Datta is a chartered accountant with 33 years of corporate
experience. The former Group Finance Director of the Murugappa
Group of Chennai joins Satyam as a non-executive special advisor, a
position he has held with several companies. He began his career
with Dunlop India Limited. Later he joined Indian Aluminium Company
Limited. He worked in various functions at that organization,
including in the parent company of Indal in Canada, before becoming
director and chief financial officer of Indal. During his tenure at
Indal, the company received several awards for business performance
and presentation of accounts. In 1998, Datta joined the Murugappa
Group. The Group won the prestigious World Family Business award
during his tenure and also saw significant advances in corporate
governance and professionalization. He has been involved with
industry associations at both national and regional levels. Homi R.
Khusrokhan Homi R. Khusrokhan retired as managing director of Tata
Chemicals in December. Earlier, he was managing director of Tata
Tea. Before joining the Tata Group in 2001, Khusrokhan worked for
Glaxo Laboratories in India for 29 years, and was managing director
of both Glaxo and Wellcome in the Subcontinent. He has been
president of the Organization of Pharmaceutical Producers of India
and vice president of the Bombay Chamber of Commerce and Industry.
A 1963 graduate (in commerce) from the Sydenham College of Commerce
and Economics in 1963, he qualified as a Chartered Accountant in
India in 1966 and did his post-grad studies at the London School of
Economics & Political Science. He remains on the boards of
several Tata Companies in a non-executive capacity. About Satyam
Satyam (NYSE:SAY), a leading global business and information
technology services company, delivers consulting, systems
integration, and outsourcing solutions to clients in numerous
industries across the globe. Satyam leverages deep industry and
functional expertise, leading technology practices, and an
advanced, global delivery model to help clients transform their
highest-value business processes and improve their business
performance. The company's professionals excel in engineering and
product development, supply chain management, client relationship
management, business process quality, business intelligence,
enterprise integration, and infrastructure management, among other
key capabilities. Satyam development and delivery centers in the
US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China,
Malaysia, Singapore, and Australia serve numerous clients,
including many Fortune 500 organizations. For more information, see
http://www.satyam.com/. Satyam Contacts: For clarifications, write
to us at Or contact our global Satyam PR representatives at: India
Deepa Jayaraman +91-981-980-8681 US Jim Swords +1-703-877-2225
Europe Sandeep Thawani +44-783-010-3838 Asia-Pacific Dan Bleakman
+61-439-408-484 Reshma Wad Jain +65-98-140-507 Safe Harbor This
press release contains forward-looking statements within the
meaning of section 27A of Securities Act of 1933, as amended, and
section 21E of the Securities Exchange Act of 1934, as amended. The
forward-looking statements contained herein are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those reflected in the forward-looking statements.
Satyam undertakes no duty to update any forward-looking statements.
For a discussion of the risks associated with our business, please
see the discussions under the heading "Risk Factors" in our report
on Form 6-K concerning the quarter ended September 30, 2008,
furnished to the Securities and Exchange Commission on November 7,
2008, and the other reports filed with the Securities and Exchange
Commission from time to time. These filings are available at
http://www.sec.gov/. DATASOURCE: Satyam Computer Services Ltd.
CONTACT: India, Deepa Jayaraman, +91-981-980-8681, ; or US, Jim
Swords, +1-703-877-2225, ; or Europe, Sandeep Thawani,
+44-783-010-3838, ; or Asia-Pacific, Dan Bleakman, +61-439-408-484,
or Reshma Wad Jain, +65-98-140-507, , all for Satyam Computer
Services Limited Web Site: http://www.satyam.com/
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