SAP SE (NYSE: SAP) has announced its proposed dividend of €2.20 per share for the fiscal year 2023, a decision recommended by both the Supervisory Board and the Executive Board. This announcement directly impacts investors monitoring the Sap Share Price Euro, as dividends are a key component of shareholder value and influence stock attractiveness. The proposed dividend, if approved at the Annual General Meeting (AGM), signifies SAP’s commitment to returning value to its shareholders and reflects the company’s financial performance in the past year.
This proposed payout totals approximately €2.568 billion, a notable increase from the €2.393 billion distributed in 2022. The payout ratio stands at 43.1% of profit after tax for 2023, significantly higher than the 139.6% in the previous year. This adjustment aligns with SAP’s stated dividend policy of distributing 40% or more of its profit after tax as dividends. This consistent dividend policy can be a significant factor for investors considering the SAP share price euro and seeking stable returns.
Key dates for the dividend payment are crucial for shareholders to note:
- Record date: May 15, 2024
- Ex-dividend date: May 16, 2024
- Payment date: May 21, 2024
These dates are essential for investors tracking the SAP share price euro as they determine eligibility for the dividend payout and the stock’s trading behavior around these dates. The ex-dividend date, in particular, usually sees a price adjustment reflecting the dividend payout.
Supervisory Board Elections and Nominations
In addition to the dividend announcement, SAP has also detailed nominations for shareholder representatives to its Supervisory Board, which is a crucial aspect of corporate governance and can influence investor confidence in the company and consequently, the SAP share price euro.
Pekka Ala-Pietilä has been nominated to stand for election as a shareholder representative at the 2024 AGM. His nomination follows the previously announced intention for him to succeed Hasso Plattner as Chairman of the Supervisory Board.
- Dr. h. c. mult. Pekka Ala-Pietilä, aged 67, Chairman of the Board of Directors of Sanoma Corporation, is nominated for election with his term expiring in 2026. His extensive experience is expected to be a valuable asset to the Supervisory Board.
Further nominations and re-nominations highlight SAP’s focus on maintaining a diverse and experienced board:
- Prof. Dr. Ralf Herbrich, aged 49, Managing director, professor for artificial intelligence and sustainability at the Hasso Plattner Institute for Digital Engineering gGmbH, is nominated for election with his term expiring in 2028. His expertise in AI and sustainability brings relevant skills to the board, reflecting modern business priorities.
- Aicha Evans, aged 54, CEO and Board member of Zoox, Inc., is nominated for re-election. If re-elected, her term will expire in 2028. Her leadership in the technology sector provides valuable insights.
- Gerhard Oswald, aged 70, Managing director, Oswald Consulting GmbH, and Associate lecturer at the Technical University of Munich, is nominated for re-election. If re-elected, his term will expire in 2026. His long-standing experience with SAP is considered beneficial for continuity.
- Dr. Friederike Rotsch, aged 51, Group General Counsel, Deutsche Bank AG, is nominated for re-election. If re-elected, her term will expire in 2028, and she will continue as Lead Independent Director (LID). Her legal expertise and independent perspective are vital for corporate governance.
These nominations align with SAP’s Profile of Skills and Expertise, the Supervisory Board’s Diversity Policy, and the objectives for its composition, ensuring a well-rounded and effective board. Investors often view the composition of the Supervisory Board as an indicator of corporate health and governance, which can indirectly influence perceptions of the SAP share price euro.
Impact on SAP ADR Holders
For investors holding SAP ADRs (American Depositary Receipts), it’s important to understand how the dividend payment process works. Each SAP ADR represents one SAP SE share. However, the final dividend amount received by ADR holders is subject to fluctuations in the euro/US dollar exchange rate.
SAP SE declares and pays dividends in euro. The depositary bank responsible for the ADR program will convert the euro dividend into US dollars at the prevailing exchange rate when the payment is processed. This means that while the announced dividend is €2.20 per share, the actual USD amount received by ADR holders will vary based on the EUR/USD exchange rate at the time of conversion, around the scheduled payment date of May 21, 2024. Therefore, ADR holders tracking their returns should consider the exchange rate dynamics in addition to the SAP share price euro.
SAP’s Strategic Direction
SAP’s commitment to shareholder returns through dividends, coupled with a robust and experienced Supervisory Board, reinforces its position as a leader in enterprise application software. SAP’s strategy focuses on enabling businesses to operate as intelligent and sustainable enterprises. With a vast customer base generating a significant portion of global commerce, SAP’s technologies in machine learning, IoT, and advanced analytics are crucial for business transformation.
The company’s focus on simplifying technology and providing end-to-end solutions across 26 industries positions it for continued growth and relevance in the evolving business landscape. This strategic direction, combined with financial performance and corporate governance, are all factors that investors consider when evaluating the SAP share price euro and the company’s long-term investment potential.
For investors and stakeholders seeking more detailed information, SAP provides various resources:
- SAP News Center: https://news.sap.com/ for the latest press releases and company news.
- SAP Investor Relations: https://www.sap.com/investors for financial information and investor-related updates.
- SAP Photos for Media: https://www.sap.com/photos for broadcast-standard stock footage and press photos.
Contact Information:
- Global Customer Center: +49 180 534-34-24
- United States Customer Center: 1 (800) 872-1SAP (1-800-872-1727)
- Investor Relations: Anthony Coletta, +49 (6227) 7-60437, [email protected]
- Press Relations:
- Joellen Perry, +1 (650) 445-6780, [email protected]
- Daniel Reinhardt, +49 (6227) 7-40201, [email protected]
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Disclaimer: This document contains forward-looking statements which are subject to risks and uncertainties. Refer to SAP’s filings with the Securities and Exchange Commission for detailed risk factors, including the 2022 Annual Report on Form 20-F.
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