Tuesday, January 13, 2009

A Grade Directors, B Grade Boards - Satyam Fiasco

Government has appointed 3 big names as independent directors to the new board of Satyam and promises to expand the board further. While the credentials of the three cannot be questioned, it is to be seen how they perform as a team. 

The previous board too had big names. People who are gurus in their own right. The likes of Palepu, M R Rao, Vinod Dham were truly 'A' Grade Directors. Raju for that matter did create India's fourth largest IT services company. However, as a team, it did turn out to be a 'B' Grade Board. Palepu infact was an expert on corporate governance. One of his course presentations begins with the title 'A Grade Directors, B Grade Boards'. Apparently its easier to preach then to perform. 

Anyways, what are the incentives for these new board members to perform? What about their existing organizations where there are already directors and conflict of interests? Only time would tell on how they perform. 


Anonymous said...

Very nicce!

Anonymous said...

So..... where is toilet? Hehe))) Joke, relax ;)

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