SAP has been maintaining a strong stand in the market as one of the leading software and tech companies in the world. They have been performing well in the market and has been generating
In an announcement made last Monday, the company stated that SAP stocks can potentially return an extra 1.5 billion euros (US $1.7 billion) to its shareholders by 2020.
The German business software group made an announcement last Monday that SAP stocks can potentially return an extra 1.5 billion euros (US $1.7 billion) to its shareholders by 2020.
The confidence lies in the enhanced payout strengthened by the company’s financial and operational performance.
SAP shared that its supervisory board had approved a management proposal. The said management proposal will provide extra payouts through share repurchases or a special dividend.
The announcement was made before SAP’s capital markets day which was held today in New York City at which investors, including the U.S. activist fund, Elliott who declared a stake in SAP during the earlier months of 2019, had hoped for a larger buyback.
However, SAP explained that the extra capital returns to its shareholders – which is subject to the policy of paying out 40% of after-tax profits in dividends – will be considered along with the company’s long-term prospects.
In a statement, SAP said:
“The Supervisory Board and Executive Board are confident that SAP’s strategy of investment in innovation and profitable growth, together with a disciplined capital return, will maximize shareholder value for the long term.”
The capital markets day was the first major outing for the two new co-CEOs, Jennifer Morgan and Christian Klein, who has taken over after Bill McDermott stepped down to head ServiceNow.