A package to tempt new CEO

The reconstituted board of the embattled Satyam Computer Services faces the difficult task of appointing a new chief executive officer to the company with precarious cash position and smarting under a web of financial irregularities.

The reconstituted board of the embattled Satyam Computer Services faces the difficult task of appointing a new chief executive officer to the company with precarious cash position and smarting under a web of financial irregularities.

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Human resource consultants said the new CEO, likely to be announced in the coming weeks, could be offered an attractive employee stock option scheme (Esop) adding up to more than five per cent stake in the company.

Ram Mynampati, who was appointed as interim CEO shortly after the alleged fraud came to light, drew a salary more than that of founder Ramalinga Raju and all the directors put together. He got a package of Rs 3.5 crore per annum.

Employee stock options (Esops), which were once seen as the dream boat to millionairedom, is falling out of favour among employees.

“What needs to be seen is how shares are valued while fixing the salary for the new CEO. Esops depend completely on the price expectation of the shares,” said a Delhi-based head hunter who did not wish to be named as his firm is empanelled with a Satyam competitor.