4.6. Corporate Governance Issues at Satyam
On a quarterly basis, Satyam earnings grew. Mr. Raju admitted that the fraud which he committed amounted to nearly $276 million. In the process, Satyam grossly vio-
lated all rules of corporate governance. The Satyam scam had been the example for following “poor” CG practices. It had failed to show good relation with the shareholders and employees. CG issue at Satyam arose because of non-fulfillment of obligation of the company towards the various stakeholders. Of specific interest are
the following: distinguishing the roles of board and management; separation of the roles of the CEO and chairman; appointment to the board; directors and executive compensation; protection of shareholders rights and their executives.