It’s a top job that no neighbour will ever envy. In fact, when the low-profile insider AS Murty was appointed chief executive officer (CEO) of the scam-tainted Satyam Computer Services, ending almost a month of suspense surrounding the appointment, there were mixed reactions from both the industry and stock market.
While a section of the industry said it’s good that an insider has got the job, especially since he (Murty) intricately knows the workings of Satyam having been in the company for nearly 15 years, others remain sceptical saying it’s a clear indication that Murty is simply an interim arrangement to keep the cart moving till Satyam’s accounts are restated and a new buyer is identified.
Besides, Murty’s name did not even remotely figure as a likely candidate since the government-appointed board was said to be looking at high-profile outside candidates like Vivek Paul.
Murty, an electrical engineer from the National Institute of Technology (Warangal), has generally remained low-profile. He joined Tata Consultancy Services after completing his Masters’ degree (Automation) from the Indian Institute of Science (Bangalore) in 1981 and handled many key roles prior to joining Satyam.
He’s been married for over 24 years and has a son who is working and a daughter who’s doing her engineering. His entire family shares a keen interest in music and dance and his children are trained classical dancers, who have performed at various functions and events. They have also released their own audio albums and sung film songs. Murty is also said to play table tennis, and is a great fan of cricket. An insider says: “He’s a gentle person with a great memory for people and names.”
“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,” Murty said when assuming the new role on February 5. Will he be able to do so?
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Consider these facts. First, Murty reports to the new heavyweight board of which Kiran Karnik is the Chairman. Second, he’s being guided by two special advisors-Homi Khusrokhan, former managing director of Tata Chemicals, and Partho S Datta, Murugappa Group’s former director (finance), in the areas of management and finance. Besides, that the Boston Consulting Group will work pro bono to assist Murty and the board in defining priorities and executing them effectively.
Third, the new board has already gone on record about selling the company, and numerous suitors (who are awaiting the restated accounts to have a sense of the valuation) have expressed their interest in the company. Fourth, being an insider, Murty is perceived to be have been close to the company’s founder Ramalinga Raju who admitted to the massive financial fraud. And last, but not the least, Murty sold around 40,000 shares for around Rs 90 lakh a few days before the scam came to light.Murty admits he sold the shares “to finance construction of my house which is nearly completed” but adds the issue has been cleared by both the board as well as legal advisors before assuming the new role.
Nevertheless, Murty (fondly called ASM) has a tough job on hand in gaining the confidence of shaky clients and boosting employee morale. He, however, should be able to deliver, having being a Satyam veteran of 15 years, and in the forefront since January 1994. He brings to play a deep understanding of the organisation, proven expertise in leading a business unit, overseeing global delivery, nurturing costumer relationships and spearheading the entire gamut of the human resource functions, according to board member Deepak Parekh.
“To further enhance morale”, says Murty, “we provide regular, clear and forthright communication via town hall-style meetings, webinars, a daily newsletter and email updates from me and other senior executives.”
Murty, according to an insider who knows him well, also plays chess. One hopes his moves are sound.