SAP announced today that Bill McDermott, CEO for the past nine years, is retiring immediately. The company says he decided not to renew his contract. SAP CEOs Jennifer Morgan and Christian Klein have been appointed CEOs.
McDermott, who started his business career as a deli owner in Amityville, Long Island and recently spoke at our TechCrunch Sessions: Enterprise event, joined SAP in 2002 as head of SAP North America. He became co-CEO, along with SAP co-founder Hasso Plattner, in 2008 and the company's only CEO in 2014, making him the first American to take on this role with the German business giant. Under his guidance, SAP's annual turnover and share price continued to increase. He will remain in the company in an advisory role for the next two months.
It's unclear why McDermott decided to retire at this time. Activist investor Elliott Management recently revealed a $ 1
It is also worth noting that in recent months, the company saw so many fractions among the executive ranks, with both SAP SuccessFactors COO Brigette McInnis-Day and Robert Enslin, the president of its cloud business and a board member, leaving the company for Google Cloud .
"SAP would not be what it is today without Bill McDermott," Plattner said in today's announcement. "Bill made invaluable contributions to this company, and he was a key driver for SAP's transition to the cloud, which will drive our growth for many years to come. We thank him for all he has done for SAP. We also congratulate Jennifer and Christian for this the opportunity to build on the strong foundation we have for SAP's future. Bill and I made the decision over a year ago to extend Jennifer and Christian's roles as part of a long-term process to develop them as our next generation of leaders. ensuring their vision and capabilities as we take SAP to the next stage of growth and innovation. "
McDermott's biggest effort in recent years came with the acquisition of Qualtrics for $ 8 billion. During our event last month, McDermott compared this the acquisition with Apple's acquisition of Next and Facebook's acquisition of Instagram. "Qualtrics is to SAP what the M&A moves were for the amazing companies," he said. leasing costs and travel management company Concur for $ 8.3 billion and SuccessFactors for $ 3.4 billion.
"Now is the moment for everyone to start an exciting new chapter, and I'm sure Jennifer and Christian will do an outstanding job," McDermott said in today's announcement. "I look forward to supporting them as they are ready for 2019 and lay the foundation for 2020. And for every customer, partner, shareholder and colleague who invested their trust in SAP, I can only convey my deepest gratitude and lasting respect. "