WALLDORF, Germany, January 13, 2022 /PRNewswire/ — SAP (NYSE: SAP) today announced a new share buyback program. The program, with a volume of up to 1 billion euros, is expected to be executed during the period between February 01 and December 31, 2022. It will be implemented on the basis of the authorization given by the annual general meeting of SAP SE on May 17, 2018, and subject to the restrictions set forth therein.
The repurchased shares will primarily be used to service future awards granted under the “Move SAP” stock-based compensation plan.
“Move SAP” is SAP’s long-term employee incentive and retention plan. It aims to reward employees who have a significant impact on the success of the company. The plan accounted for the majority of SAP’s stock-based compensation expense from 2018 to 2020. Under its previous policy, SAP served obligations arising from the plan with cash payments, but has now decided to settle future awards. mainly in stocks.
Obligations arising from outstanding “Move SAP” awards will continue to be satisfied by cash payments and the settlement methods for SAP’s other stock-based compensation programs will remain unchanged.
SAP Finance Director Luka Mucic said: “By settling our equity-based compensation primarily in equity rather than cash payments for new awards issued from 2022 onwards, we intend to further strengthen our employee ownership culture and ensure that the interests of employees are closely aligned with those of our shareholders.”
The new share buyback program follows SAP’s 2020 repurchase of around 14 million shares for around 1.5 billion euros.
You can find more information on the “Move SAP” plan in section B.3 (Payments in shares) of the SAP Integrated Report 2020.
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