Finding an effective leader is a problem for companies even in good times, but the task gets tougher when an employer is in the midst of a royal mess. Given that, Satyam?s board, now led by Kiran Karnik, has done a good job in finding a CEO in just 3 weeks? time.
The man now in the hot seat, AS Murty, ? has the required bandwidth and support?, the board concluded. A Satyamite for 15 years, Murty now has the arduous responsibility of ?restoring the confidence of 53,000 employees and their families, 300,000 shareholders? and a fast shrinking client base which till January 22 was 690.
Murty has ?no misgivings about the enormity of the task?, but has expressed confidence about accomplishing ?the impossible?. But this insider?s appointment, barely a day after the Sebi finally began questioning B Ramalinga Raju for its probe into insider trading in the Satyam stock as well as fraud and market manipulation, is jarring.
For starters, Murty sold 21,000 shares of Satyam on December 12 and 14. On the fateful day that the original board agreed to the Maytas firms? buyout?December 16, Murty offloaded another 19,000 shares. Satyam?s spokespersons are citing ?personal? reasons for Murty?s decision.
But there are other pertinent questions. Some Satyamites believe Murty is a ?Raju camper?, as is evident from his confession letter. He was part of the task force Raju formed to ?address the situation arising out of the failed Maytas acquisition attempt?. As leader of Satyam?s global delivery team, it?s also unlikely that Murty had no idea about Raju?s claimed operating margin of 3%.
Does anyone know the whereabouts of the other person Raju recommended as interim CEO?Ram Mynampati? Last reported, he was in the US, ostensibly to assuage clients. But several Fortune 500 clients are still walking away.
The Company Law Board?s grant of immunity from prospective legal actions against new directors and management may have been an essential assurance for the new board and CEO to go about their job. But like in the case of members of the new board, might it have been better to appoint an outsider as CEO?
surabhi.a@expressindia.com
