Software giant SAP shares under pressure as CEO steps down
Frankfurt (dpa) - Shares in Europe′s biggest software maker SAP came under pressure Monday in the wake of the surprise resignation of the Germany-based group′s chief executive Leo Apotheker.
Apotheker′s decision to step aside late on Sunday less than a year after he emerged as the company′s sole chief executive officer (CEO) in the middle of 2009.
Announcing his departure late Sunday, SAP said it would revert to its previous structure of a dual top management team with Bill McDermott, head of field organisation, and Jim Hagemann Snabe, product development chief assuming control of the group.
However, the announcement unsettled investors with SAP shares slipping 0.3 per cent to 33.28 euros (46 dollars) in early trading.
The company said the departure was by mutual consent and did not give a reason for the change at the top of the group.
"The supervisory board has come to a mutual agreement with the spokesman of the management board, Leo Apotheker, not to extend his contract as an executive board member.
"Leo Apotheker has laid down his post as member of the management board with immediate effect," SAP said.
The announcement came after Apotheker unveiled last month SAP′s latest results, saying the group expected its sales to pickup this year after posting a fall in both fourth-quarter revenue and profit.
SAP earnings in the final quarter dropped 12 per cent to 727 million euros rom 830 million euros a year earlier with revenue falling 9 per cent to 3.2 billion euros.
But the group said it expects revenue this year from its key software and software service operations to rise between 4 per cent and 8 per cent from 8.2 billion euros in 2009. dpa amc mt