SAP has announced a new share repurchase program with a volume of up to €1bn, which it expects to implement this year. 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 incentivisation and retention plan, aimed at rewarding employees who provide a significant impact to business success. The plan accounted for most of SAP’s 2018-2020 share-based compensation expenses.
Under its previous policy, SAP serviced obligations that arose from the plan with cash payments, but the company has 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.
Luka Mucic, CFO of SAP, 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.”