If we ask a question that directly, it would be difficult to answer it. We might say yes, no or may be. Any which way we would either be right or wrong. We would be asking the same question if it was any other person.
Another question which comes to my mind is, of all the people in the fray like Vivek Paul, Venkatesh Roddam, Raman Roy and many others, why A. S Murthy? I might not be able to answer the question but I can say this. It was in line with what the government and the board set out to do. They were very clear in their priorities. They wanted someone in the inside at the top. They did just that.
Murthy is from the inside and with Satyam for the past 15 years. He might not be fully aware of the financial gymnastic the ex-fellas have done but he will be having some idea. He might actually worked with the CEO and the CFO up-close. Above all, it is best to field someone who does not have any expectations to start with. The markets, the clients and the employees don’t know how to react. What would they do? They will wait and watch.
We should also look at what the board has done so far :
1. It has brought some stability to the markets. The price of the stock is hovering between 30 and 50 since the board came along. Not bad for a company which every body thought is of zero value.
2. It has arranged for the salaries of the employees.
3. It has released a video on the YouTube to calm the employees and the clients. Not many clients has left since then. They were actually in a wait and watch mode.
4. It has arranged a loan for the capital requirements.
5. It has appointed new auditors, KPMG and Delotte Touche.
6. It has appointed Boston Consulting Group as the management adviser and Goldman Sachs and Avendus as the investment bankers.
7. Now, It has picked a CEO who is a Satyam executive for 15 years.
Of all the things board has done so far everything turned out to be good. As many as 6 different groups expressed interest in buying the company. Spice Group was a little adventurous and called for an e-Auction. In all probability Satyam would be sold in less than 2 months.
If it wasn’t for the eminent board, most of these things wouldn’t have happened.
