Six months after the appointment of a tandem of CEOs, SAP is experiencing another change at its top. Co-CEO Jennifer Morgan will leave the German group at the end of April, after reaching an amicable agreement with the board of directors. In October 2019, she took over the management of the company with Christian Klein, succeeding Bill McDermott.
Christian Klein will now be the sole CEO of SAP as well as spokesperson for the board of directors. The company explains that more than ever, the current situation demands that companies act quickly and decisively, and have a clear management structure that supports them. The decision to revert to the one-management model was therefore taken earlier than expected.
“It has been a great privilege to drive the growth and innovation of SAP in so many areas and most recently as co-CEO,” said Jennifer Morgan, who has worked for SAP since 2004. Christian Klein and Chairman of the Board directors, Hasso Plattner, both thank him for his commitment to the company.
Jennifer Morgan will step down as co-CEO of SAP at the end of April. (Source: SAP)
Fewer licenses sold due to the pandemic
At the same time, SAP is also feeling the effects of the coronavirus crisis. Although the company recorded an increase in its operating profit in the first quarter, it is still not immune to the effects of the pandemic. However, business activities in the first two months, that is, the period before the onset of Covid-19, was particularly strong. But at the end of the first quarter, “a significant number of new contracts were postponed”. As a result, revenue from the sale of software licenses fell 31% from the previous year.