SAP takes tag-team approach to exec reshuffle

With the appointment of Leo Apotheker to the post of co-CEO, SAP is trying a tag-team, two-in-the-box CEO transition strategy it has used before.

Apotheker's new role had largely been anticipated, following his appointment as deputy CEO more than 12 months ago. Apotheker will assume the co-CEO position immediately and join current CEO Henning Kagermann at the head of the table. Kagermann plans to retire in May 2009.

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The enterprise software giant used a similar game plan when grooming Kagermann as the successor to SAP co-founder Hasso Plattner.

Plattner said in a statement this week: "Henning Kagermann requested that the supervisory board appoint Leo Apotheker as co-CEO in order to prepare him as successor in the best possible way during the remainder of Henning's tenure. After years of massive investments and the successful launch of trendsetting innovations in the areas of service-oriented architecture, new solutions and business models for the mid-market...SAP now faces the task of boosting the application of these innovations among our customers and end users."

Kagermann's contract originally was due to expire at the end of 2007 but it was extended to May 2009.

SAP also announced three new members to its executive board: Erwin Gunst, president of SAP's EMEA region; Bill McDermott, CEO of SAP Americas and Asia Pacific Japan; and Jim Hagemann Snabe, managing director of the SAP Nordic region and general manager for SAP's global industry solutions development.

The three will join the executive board 1 July.

After joining the board, Gunst will fill the newly created position of chief operating officer, McDermott will eventually take over SAP's sales efforts worldwide - a role formerly held by Apotheker - and Snabe will oversee development of SAP Business Suite and SAP NetWeaver, two major focuses for the company.

With the addition of the three executive board members, SAP's Peter Zencke, who heads SAP's application platform and research will step down this year, when his term expires. Zencke was responsible for SAP's major mid-market on-demand applications effort Business ByDesign.

In a conference call, Apotheker told the media that, in his new role, he will be responsible for industry development; and, in the second half of the year, work with his new team to develop SAP's budget.

Original article: SAP tries tag-team for CEO transition from CNET News.com