Satyam appoints new chief executive

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Offshore outsourcing giant Satyam has appointed a new leader in the form of company veteran A.S Murthy.

Murthy, who has worked at Satyam for 15 years, will take up his new post of chief executive (CEO) immediately, following last month's departure of founder and chairman Ramalinga Raju amid an accounting scandal.

“Extensive board discussions over the past few weeks made it clear that the new CEO should come from within. “[Murthy], an extraordinary executive with widespread support among all stakeholders — internal and external — will do an exceptional job leading Satyam at this critical juncture,” said Satyam board member Deepak Parekh in a statement.

“[He] has a deep understanding of the organisation 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.”

Satyam also used the new appointment news as an opportunity to announce that it had secured $130 million in financing. This money will complement other monetary arrangements to help the company whether current financial challenges.

“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,” said Murthy of his new role.

“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.”

A number of other appointments were also announced, as the company does its best to move away from an “accounting crisis” and restore confidence among its customers and other key stakeholders.

Homi Khusrokhan, former managing director of Tata Chemicals and Partho Datta, formerly finance director of the Murugappa Group, were both appointed as special advisors. They will work together with the Boston Consulting Group on a pro bono basis to help define Satyam’s strategy going forward.

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