Surprising Leadership Change - New Double For SAP

SAP


SAP - Surprising Leadership Change:

Surprising change at the top of Germany's most valuable listed companies: SAP CEO McDermott resigns. Board members Morgan and Klein are now to lead SAP.

Europe's largest software manufacturer SAP receives a new leadership. The former boss Bill McDermott resigns surprisingly.

The current board members Jennifer Morgan and Christian Klein are to direct the fortunes of the most valuable listed German group in the future.

SAP succession planning takes effect:


McDermott has been SAP's CEO since 2014. The 58-year-old American has heavily rebuilt the company in the direction of cloud software for rent from the Internet.

With the change of leadership, the long-term succession planning of the control panel, it said. A concrete reason for the resignation McDermotts called the enterprise so far not.

McDermott's contract ran until 2021. By the end of the year, the manager wants to remain in an advisory role in the company.

McDermott increased the value of SAP:


He is considered a gifted salesman, hesitation and doubt is not his thing. For its growth in the cloud, SAP invested many billions in expensive acquisitions in its time.

Under his aegis, the group was the most valuable German stock exchange group, currently SAP is worth about 130 billion euros.

McDermott had recently announced a plan for longer-term efficiency increase in mid-November. Investors had repeatedly criticized the long-suffering margin of cloud business growth.

McDermott, on the other hand, relied heavily on the growth of the software, which is used over the Internet and paid for in the subscription model or fee.

Positive quarterly figures:


The quarterly results of the company, which appeared fresh during the night, are impressive. Sales and profits climbed unexpectedly strong.

Compared to the previous year, the Group increased its revenue by 13 percent to 6.8 billion euros. The bottom line was left with 1.26 billion euros 30 percent more profit.

In the day-to-day business, the cloud business also contributed significantly more profit.

Chief Financial Officer Luka Mucic attributed this to, among other things, cost reductions and other efficiency measures. In the previous quarter, SAP still felt the trade dispute between the US and China.

Group restructuring, job cuts:


In January, McDermott had initiated a major corporate restructuring. The company removes up to 4,400 jobs in areas that, according to management, do not have a bright future.

However, the Walldorf want to create jobs in promising areas such as artificial intelligence. In the first half of the year, the reorganization program had cost a good one billion euros, partly because of severance payments.

As the group wants to continuously increase its margin in the next five years, now Jennifer Morgan and Christian Klein must explain the investors in mid-November.

Expectations are high: In April, US-based activist Paul Singer, who is unwelcome to many executives, announced that he and his hedge fund Elliott had made large-scale purchases at SAP, holding shares worth 1.2 billion euros.

The new SAP:


Morgan is 48 years old and comes from the USA like McDermott. So far, she controls the cloud sector on the SAP board.

She has been with the company since 2004 and has been on the board since 2017. Klein was born in 1980 and is currently responsible for product development on the board.

He has been with the company since 1999 and on the board since last year.

******

Post a Comment

0 Comments

close