Employees restive, fear for jobs
Their jobs are uncertain, their lucrative stock options are gone and they have lost faith in the men who rule them.india Updated: Jan 09, 2009 00:05 IST
Their jobs are uncertain, their lucrative stock options are gone and they have lost faith in the men who rule them.
For the 53,000 employees of Satyam Computer Services Ltd, the fraud is a matter of personal crisis despite their high skills and hard work.
Employees are not sure of what happens next. Disillusionment is making matters worse. “The company is good, but we have lost faith in the management,” a Bangalore-based software engineer with Satyam said. He did not want to be identified, fearing for his job.
Ram Mynampati, appointed as interim CEO by disgraced chairman Ramalinga Raju, was clear where his priorities lay. “For us employee’s career is a matter of top priority,” he said, reassuring them that December salaries will be paid for the company that seems to be running out of cash after disclosures that its profits and revenues were inflated.
Senior company officials who earned a major part of their salaries through the employee stock option plan (ESOP) are likely to be severely hit as Satyam’s stock has dropped from highs of around Rs 544 per share last year to about Rs 40 now. Its US shares are in pennies.
Headhunters say while employees may not have the right to resort to a legal recourse, they can consider other options like an employee buyout. “Employees can get together and along with an investor buy out the company, the way it happens in countries like US,” said Rohit Ramani, director operations at human resource consulting firm EmmayHR Services.