Tech Mahindra shortlists 3 for Satyam's CFO post

Tech Mahindra, the new owner of Satyam Computer Services, is understood to have shortlisted three names for the post of chief financial officer (CFO) at Satyam, which is yet to restate its accounts. The company is expected to take a final decision in this regard once the new board members from Tech Mahindra are inducted on June 1.

All three candidates, according to a source close to the development, are from Mumbai-headquartered companies. One of them, the source added, is being considered from the Tata group and is understood to have been recommended by Homi Khusrokhan, former managing director of Tata Chemicals, now an advisor to the Satyam board. This could not be independently confirmed, though.

The CFO post has been lying vacant at Satyam ever since its former CFO, Srinivas Vadlamani, was implicated along with the company’s founder Ramalinga Raju who admitted to a financial fraud in the company.

A Satyam spokesperson, when contacted, declined to comment on the matter.

Prabal Basu Roy, fund manager and former chief financial officer of Chennai-based Polaris Software — who was reportedly among the front-runners for the post earlier this year — is understood to have been approached but did not accept the post.

When contacted, Roy said: “Well, I was approached. But things have changed a lot since the last time I was approached to take up this position. Now it’s more like a corporate assignment. Earlier, it was the issue of the entire industry and the reputation of the corporate sector.”

‘Operation Phoenix’ to tackle excess staff

Meanwhile, Tech Mahindra will also be implementing what it has christened 'Operation Phoenix' (named after the mythical bird which rises from its own ashes every time it dies), “to give a human face to redistribution and redeployment of the excess staff that Satyam has on its rolls”.

Vineet Nayyar, MD & CEO of Tech Mahindra, was on record recently that the company had an excess staff of around 10,000.

Operation Phoenix, according to the source, will look at four R(s): rebuilding Satyam; re-energising the associates (Satyam employees) to boost their morale; retaining talent; rebranding or refurbishing the Satyam brand.

Moreover, as part of a 'virtual pool', all 'surplus' employees “will be asked to take a reasonable amount of time off and the company will continue to support them during this period by paying a certain percentage of the salary. The employees may also opt to freelance during this period,” the source added.

As for the Upaid case, the preference is clearly for an 'out-of-court' settlement. However, both parties are yet to reach a settlement.