Satyam Names CEO and Special Advisors, and Secures Financing
February 05 2009 - 2:02PM
PR Newswire (US)
- Longtime Satyam executive A.S. Murthy to lead organization,
effective immediately - Special advisors Homi Khusrokhan and Partho
Datta appointed to strengthen management and financial operations
HYDERABAD, India, Feb. 5 /PRNewswire-FirstCall/ -- Satyam Computer
Services Limited (NYSE:SAY), a global consulting and information
technology services provider, today appointed A.S. Murthy as chief
executive officer. Murthy, 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 Murthy and the board define and execute 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," Murthy 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. Murthy Satyam's new
chief executive officer was promoted from Head of Satyam's
Leadership Development Group. In that role, A.S. Murthy (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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