From Matt Moore of the AP:
FRANKFURT (AP) — The chief executive of German software company SAP AG, Leo Apotheker, has resigned after his contract was not renewed and two new co-CEOs have been named, the company said Sunday.
Neither the company nor Apotheker, who has been with company since 1988 and CEO since 2008, said why the decision was made not to renew his contract.
The company’s supervisory board, the German equivalent to a U.S. board of directors, did appoint two co-CEOs: Bill McDermott, head of field organisation; and Jim Hagemann Snabe, head of product development. Both men are on the company’s executive board.
In a brief statement, SAP, based in Walldorf, said its “supervisory board has reached a mutual agreement” not to extend the contract.
McDermott joined SAP in 2002 and oversees global field operations for the company. He joined its executive board in 2008. Hagemann Snabe joined SAP in 1990.
SAP also said Vishal Sikka, its chief technology officer, was appointed to the company’s executive board and its co-founder, Hasso Plattner, who chairs the supervisory board, “will continue to play a strong role in advising the new leaders on technology and product development.”
Plattner said the executive board’s new setup would let the company “better align product innovation with customer needs.”
Last month, SAP, whose programs help companies do back-office work such as payroll, inventory management and accounting, said its fourth-quarter net income fell 12 per cent to €727 million ($995.3 million) because of difficult market conditions, but said it expected an improvement this year.
Shares of SAP closed Friday at €33.38, down 1.2 per cent.