The German software company, SAP, has announced that former Deloitte CEO, Punit Renjen, will succeed co-founder Hasso Plattner as the designated supervisory board chairman.
After serving for two decades, Plattner’s term will expire in May 2024. SAP’s board has nominated Renjen, who is 61 years old, to stand for election as a new supervisory board member at the company’s annual general meeting on May 11, which will trigger the handover process.
What is the future of SAP in 2023 under the leadership of Punit Renjen?
According to a statement by Plattner, Renjen’s extensive experience as a highly successful CEO of one of the world’s largest consulting firms brings valuable insights and expertise to the board. The news positively affected SAP’s shares, which rose slightly by 1.2% at 0840 GMT on Thursday, indicating that investors were not entirely surprised by Plattner’s departure.
The share move was aligned with the European technology sector (.SX8P) but outperformed Germany’s blue-chip DAX (.GDAXI). This leadership change comes at a critical time for SAP, as it faces increased competition from rivals such as Oracle and Salesforce in the enterprise software space.
The co-founder of SAP, Hasso Plattner, will step down as chairman of the supervisory board in May 2024 after serving for two decades. To succeed him, SAP has named former Deloitte CEO, Punit Renjen as the designated supervisory board chairman.
Renjen’s appointment is subject to approval by shareholders at the company’s annual general meeting in May 2022. Plattner expressed confidence in Renjen, citing his experience as a successful CEO of one of the world’s largest consulting firms and his deep understanding of SAP’s customers’ needs and the broader industry.
Plattner currently owns a 6.16% stake in SAP, worth 8.23 billion euros ($8.73 billion), and has promised to remain committed to the company as an investor with an unchanged stake. Despite resistance from shareholder representatives, Plattner was re-elected for two years in 2022 and pledged to present a successor at least six months before the end of his term.
Under Renjen’s leadership, Deloitte’s sales grew from $35 billion to $59 billion in seven years, earning him an impeccable track record. SAP’s announcement of Renjen’s nomination was well received by investors, with SAP shares rising 1.2% on the news.
Separately, SAP announced that it would propose a dividend of 2.05 euros per share for 2022, lower than the previous year’s dividend of 2.45 euros per share, which included a 0.50 euros per share special dividend.
SAP’s software solutions are used by businesses of all sizes across various industries and are designed to help organisations streamline their operations, optimise their business processes, and improve overall efficiency.
