Top SAP executive resigns after Q2 2022 earnings release

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How Q2 earnings are sending the corporate giant GLANDERSshares fell, president of SAP North America DJ Paoni is leaving the corporate company, TechCrunch has learned from sources. SAP confirmed the news, stating that Paoni is leaving the company after 26 years of service.

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“We truly believe that the momentum we are seeing in North America can be attributed to strong leadership, so the search for his successor continues,” the company said in a statement. “Announcement will be made after confirmation. We thank DJ for his incredible contributions and wish him all the best for this next chapter.”

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As head of US sales, Paoni played a prominent role in the company, developing strategy and day-to-day operations for the region, SAP’s largest market. On many occasions, he has also acted as a public figure in the US. As an example, he spoke of the importance employee mental health during the pandemic at a 2021 event hosted by The Washington Post.

Analyst at Constellation Research, despite the fact that there have always been disputes about tensions between SAP headquarters in the US and Germany. Holger Müller says he doesn’t necessarily see it coming into play here.

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“There are always rumors of tension between the cultures of Germany and the US when an executive leaves the US. And while cultural issues are common in global companies, they are no more visible at SAP than they are at other technology vendors,” he said.

He added that it would be interesting to see who SAP chooses as Paoni’s successor. “It will be interesting to see who will replace Paoni, a 26-year SAP veteran. We can see the generational shift that happened at the board level that is now happening in the SAP regions.”

Staff turnover is actually not unusual for a company. Former CEO Bill McDermott, retired in 2019 after 17 years of work in the organization and became CEO of ServiceNow soon after it. The company replaced McDermott with co-CEO setup including Christian Klein from Germany and Jennifer Morgan from the USA. Six months later Morgan has retired. More recently, Rob Enslin left SAP after 27 years join Google Cloud and later became UIPath CEO.

Paoni’s departure came to light yesterday, the same day that SAP announced earnings for the second quarter of 2022. According to CNBC, the company reported overall revenue growth of 13%, with cloud computing revenue up 34%. However, the company lowered its profit expectations due to the war in Ukraine.

SAP shares are currently down 38% from their 52-week high but up 3.71% from yesterday’s closing price.




Credit: techcrunch.com /

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