The software company SAP restructured its board of directors last year. In the course of this, three items were exchanged – which cost the most valuable DAX company millions. This emerges from the company’s annual report. The “Handelsblatt” reported on Thursday. Accordingly, SAP paid the executive board post severance payments totaling more than 23 million euros.
Most of it went to co-CEO Jennifer Morgan, who left in April. She received a severance payment of 15 million euros. The American manager had worked at SAP since 2004 and had been on the company’s board of directors since 2017. In October 2019 she finally followed in Bill McDermott’s footsteps together with Christian Klein as a double head. She became the first woman to head a Dax group. After leaving, she moved to Blackstone, an asset manager.
15 million euros in severance payment for Co-CEO Jennifer Morgan
Further millions were due for the departures of the board members Michael Kleinemeier and Stefan Ries. Kleinemeier left at the same time as Morgan in April last year and received a good 1.2 million euros in severance payment and two million euros in compensation for a twelve-month subsequent non-competition clause. According to the “Handelsblatt”, his department, Digital Business Services, was distributed to the board of directors for sales and product management when he left.
Stefan Ries went to Morgan and Kleinemeier for a month and received a severance payment of almost seven million euros. And Ries also received compensation of 1.8 million euros for a subsequent non-competition clause.
CEO Christian Klein will receive a maximum donation of 19.5 million euros in 2020
As the “Handelsblatt” suspects, the remuneration for the departed board members will be even higher than just the severance payments. For example, Morgan’s 2020 annual report shows remuneration of a maximum of 17.5 million euros. The amount depends on the variable remuneration and has not yet been determined. However, an inflow of around 1.5 million euros for Morgan is already listed.
According to the annual report, CEO Christian Klein will receive a maximum of 19.5 million euros in benefits for 2020 – depending on variable remuneration. The actual sum should therefore be lower, according to the “Handelsblatt”. The annual report lists an inflow of around 2.2 million euros for him.
The management board restructuring at SAP is not over yet, so the “Handelsblatt” continues. In January, SAP boss Klein announced that he would bring Julia White – Microsoft’s top manager – to the board. She should head a marketing department. The previous head of sales, Adaire-Fox Martin, left the group at the end of January.