Withdrawal ruins heavy figures: SAP CEO McDermott closes the clock

              Friday, October 11, 2019

In an accident McDermott lost his left eye. Since then he always wears sunglasses.
(Photo: picture alliance / Uwe Anspach / d)

              SAP presents outstanding figures for the third quarter. But the joy lasts only briefly for Europe's largest software manufacturer: CEO McDermott announces his retreat only a little later.
              The leader of software company SAP, Bill McDermott, resigns after ten years. The Walldorf-based company announced at night that the 58-year-old will not renew his contract and will withdraw from his post. His successors take over with immediate effect, the board members Jennifer Morgan and Christian Klein as co-CEOs. According to the report, McDermott will remain in a "consultative role" in the company by the end of the year, ensuring a "smooth transition". SAP 104.94 SAP is currently Germany's most valuable listed group. McDermott had joined the software giant in 2002. Six years later, the American was appointed to the board. At the beginning of 2010, he took over the position of CEO. He was one of the top earners in the German economy. His contract ran until 2021. McDermott had rebuilt the group heavily in the direction of cloud software for rent from the Internet. "The growth of SAP will continue to benefit from this course setting for many years," said supervisory board chairman and SAP co-founder Hasso Plattner, thanking McDermott for his work. "Without Bill, SAP would not be the company it is today." "Now is the time to start a new chapter," McDermott said. Previously, SAP had presented outstanding figures for the third quarter. The company posted strong sales and earnings gains. Sales climbed year-on-year by 13 percent to 6.8 billion euros. Above all, the sector with cloud software for rent from the Internet grew strongly – also thanks to acquisitions. Earnings before interest and taxes increased by 36 percent to 1.7 billion euros according to IFRS standards. This was significantly more than analysts had expected. In day-to-day business, the long-unprofitable cloud business contributed more profit. Chief Financial Officer Luka Mucic attributed this to, among other things, cost reductions and other efficiency measures. The financial forecasts for the current and coming years confirmed the management.

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