SAP chief in abrupt exit as group reinstates joint CEO structureBy Daniel Schäfer in Frankfurt

Published: February 8 2010 02:00 | Last updated: February 8 2010 02:00

Léo Apotheker, SAP’s chief executive, resigned last night in a management reshuffle at the world’s largest business software maker.

The company said Mr Apotheker would be replaced by Bill McDermott, head of field organisation, and Jim Hagemann Snabe, head of product development, in a joint CEO structure.

“The supervisory board has come to a mutual agreement with the spokesman of the management board, Léo Apotheker, not to extend his contract as an executive board member.

“Léo Apotheker has laid down his post as member of the management board with immediate effect,” the German group said.

SAP failed to provide a reason for the departure, but a senior company executive told the Financial Times that the supervisory board did not think Mr Apotheker would be the right person to repair morale at the company after an employee survey last September revealed a dramatic loss of confidence in SAP’s senior management.

Mr Apotheker, whose contract was to expire at the end of 2010, has been running the company as sole chief executive since a joint structure was abandoned early last year.

He had been criticised for delays in the introduction of new business software for small and medium-sized companies.

An attempt by SAP to increase maintenance fees in the middle of the economic crisis had also attracted criticism from some customers last year.

Hasso Plattner, one of the founders of SAP and the elder statesman of the group, recently indicated concern over the direction of the company.

Mr Plattner said yesterday: “The new structure at the top of the company is meant to bring the product innovations closer together with customers’ requirements.

“The new management will continue the strategic direction of the company and the focus on profitable growth and it will further push our leading position in the market in 2010.”

Mr Apotheker’s departure came as a surprise, given that only two weeks ago he had expressed great optimism for the group, which had a difficult 2009, a year that was dominated by job cuts and shrinking profits.

He forecast the group’s core revenues – comprising sales of software and related services such as online subscriptions – would climb by between 4 per cent and 8 per cent in 2010 from last year’s €8.2bn (£7.2bn).
Copyright The Financial Times Limited 2010. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web.

Source: FT.com