SAP 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.
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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.