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Satyam’s disastrous news of financial fraud two days ago – which sent the stock plummeting again – could have been seen in advance in the turnover at the top at the end of December. The company had struggled with two acquisitions last year – which we now learn were intended as a last ditch effort to fill the gap – but you can see here in the FirstRain management turnover chart of the last 90 days that 4 board members resigned in December, after very little top level turnover for years.

Board of directors mass turnover only usually happens in a private equity buyout where the board is replaced, otherwise mass turnover is a huge leading indicator that something is very wrong – as was clearly the case at Satyam.

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