As second-quarter earnings drive the enterprise giant JUICE‘s stock down, President of SAP North America DJ Paonic leaving the enterprise company, londonbusinessblog.com has learned from sources. SAP confirmed the news, saying that Paoni will retire from the company after 26 years.
“We truly believe the momentum we are seeing in North America can be attributed to strong leadership, so the search for his successor is ongoing,” the company said. “An announcement will be made when it is confirmed. We thank DJ for his incredible contributions and wish him all the best in this next chapter.”
As head of US Sales, Paoni played a prominent role in the business, strategy and day-to-day operations for the region, SAP’s largest market. In many cases, he also acted as the public face in the US. As an example, he spoke of the importance of: employee mental health during the pandemic in a 2021 event from The Washington Post.
While there has always been talk of tensions between SAP’s US and German headquarters, Constellation Research analyst Holger Muller says he doesn’t necessarily see this coming into play here.
“There is always the rumor of tensions between German and American culture when an executive leaves the US. And while cultural challenges are common among global companies, they are no more prominent at SAP than other technology vendors,” he said.
He added that it will be intriguing to see who chooses SAP as Paoni’s successor. “It will be interesting to see who will succeed Paoni, a 26-year veteran of SAP. We may see the generational shift that has taken place at board level now taking place in the SAP regions.”
Director turnover is actually not uncommon at the company. Former CEO Bill McDermott stepped down after 17 years with the organization in 2019 and became CEO of ServiceNow not long after. The company replaced McDermott with a co-CEO lineup that included Christian Klein in German and Jennifer Morgan in the US. Morgan resigned after six months. More recently, Rob Enslin left SAP after 27 years to join Google Cloud and later moved to become CEO of UiPath.
Paoni’s departure was learned yesterday, the same day SAP announced earnings for the second quarter of 2022. By CNBC, the company reported overall revenue growth of 13%, with cloud revenue specifically growing 34%. However, the company revised its profit forecasts, a decline attributed to the war in Ukraine.
Currently, SAP shares are down 38% from a 52-week high, but are up 3.71% from yesterday’s closing price.