SAP announces share repurchase program to service future share-based compensation awards

Rhea-AI Summary

SAP has announced a new share repurchase program worth up to €1 billion, set to run from February 1 to December 31, 2022. This buyback aims to service future awards under the 'Move SAP' share-based compensation plan, enhancing employee ownership culture by settling most new awards in shares rather than cash. This decision follows a previous buyback of 14 million shares for approximately €1.5 billion. The program is expected to align employee interests with shareholder value.

Positive

• Establishment of a €1 billion share repurchase program enhances shareholder value.
• Strong alignment of employee and shareholder interests through share-based compensation.
• Previous successful buyback of 14 million shares, indicating a pattern of returning value to shareholders.

Negative

• None.

WALLDORF, Germany, Jan. 13, 2022 /PRNewswire/ -- SAP (NYSE: SAP) today announced a new share repurchase program. The program, with a volume of up to €1 billion, is planned to be executed in the period between February 01 and December 31, 2022. It will be implemented based on the authorization granted by the Annual General Meeting of SAP SE on May 17, 2018, and in compliance with the restrictions set forth therein.

Repurchased shares will primarily be used to service future awards granted under the ′Move SAP′ share-based compensation plan.

′Move SAP′ is SAP's long-term employee incentivization and retention plan. It is aimed at rewarding employees who provide a significant impact to business success. The plan accounted for the majority of SAP's 2018 – 2020 share-based compensation expenses. Under its previous policy, SAP serviced obligations arising from the plan with cash payments but has now decided to settle future awards predominantly in shares.

Obligations from outstanding ′Move SAP′ awards will continue to be serviced with cash payments and the settlement methods of SAP's other share-based compensation programs remain unchanged.

SAP CFO Luka Mucic said: "By settling our share-based compensation predominantly in shares rather than cash payments for new awards issued from 2022 onwards, we intend to further strengthen our employee ownership culture and ensure employees' interests are closely aligned with those of our shareholders."  

The new share repurchase program follows SAP's 2020 repurchase of around 14 million shares for about €1.5 billion.

More information on the ′Move SAP′ plan can be found in section B.3 (Share-Based Payments) of SAP's 2020 Integrated Report.

About SAP  

SAP's strategy is to help every business run as an intelligent enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: SAP customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers' businesses into intelligent enterprises. SAP helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want – without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, SAP helps the world run better and improve people's lives. For more information, visit www.sap.com.

Follow SAP Investor Relations on Twitter at @sapinvestor.

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP's 2020 Annual Report on Form 20-F.

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SOURCE SAP SE

FAQ

What is the purpose of the SAP share repurchase program?

The share repurchase program aims to service future awards under the 'Move SAP' share-based compensation plan.

When is the SAP share repurchase program scheduled?

The program will take place between February 1 and December 31, 2022.

How much is SAP investing in the share repurchase program?

SAP has announced a share repurchase program worth up to €1 billion.

What is the impact of the share repurchase on SAP's shareholders?

The repurchase program is expected to enhance shareholder value by aligning employee interests with those of shareholders.