A glance at the overall picture reveals that a board position at SAP is a high-risk role with a quick exit trigger. Aside from CEO Christian Klein, who has led the software giant since 2018, only Cloud Chief Thomas Saueressig and CTO Jürgen Müller have been with the company for more than three years. CFO Dominik Asam has been with SAP for just over a year, and two additional board positions have been newly filled this year.

It is not immediately clear to investors why now is the „right time“ to dismiss the Chief Sales Officer and the Chief Marketing Officer amid the company's „cloud transformation“. Instead, doubts about the timing emerge, especially when considering that Scott Russell and Julia White's contracts were extended just last year through 2027.

The abrupt reversal of agreements made in 2023 will be cushioned for the departing executives with generous severance packages, which may cause dissatisfaction among investors – especially once the total amount, including all compensation elements, becomes clear. Additionally, redistributing Julia White's responsibilities to other areas appears to be an unconvincing cost-saving measure, as shareholders will naturally question why a manager’s position was extended in 2023 if her department seems redundant in 2024.

Frequent executive board changes carry the risk of undermining trust in any company. SAP, in particular, has already caused considerable disruption with its ongoing leadership reshuffles, making a consolidation phase urgently needed. Aside from the continuous top-management turnover, the rocky transition at the helm of the supervisory board this spring has also sparked significant discontent among investors.

Supervisory Board Chairman Pekka Ala-Pietilä, who was quickly elevated by SAP to his role following the rift with Plattner's designated successor Punit Renjen, has lost no time in becoming active in his new role. However, the rapid pace of transformation at the executive level is making it increasingly difficult for observers to distinguish between necessity and mere actionism. SAP must be careful not to get stuck in an endless cycle of management resets.