SAP Shareholders Approve Obermann as Chairman as Cloud Growth Meets Market Skepticism

René Obermann wins 99% shareholder vote to lead SAP's supervisory board from 2027, as cloud revenue surges 27% and AI investments top €1 billion amid a 43% stock decline.

René Obermann is set to take the helm of SAP's supervisory board after receiving more than 99 percent of shareholder votes at the company's virtual annual general meeting. The former Deutsche Telekom chief, aged 63, will assume the chairmanship in 2027, ending months of uncertainty at the top of the software giant's oversight structure.

Until then, Pekka Ala-Pietilä — the former Nokia executive who stepped into the role on an interim basis — will continue to lead the board and oversee an orderly transition. The succession process had been anything but smooth. Founder Hasso Plattner vacated the chair in 2024 after more than two decades, and his designated successor, ex-Deloitte boss Punit Renjen, parted ways with the company abruptly. SAP cited differing views on the chairman's role as the official reason for the split.

Ala-Pietilä highlighted Obermann's technological expertise and deep familiarity with German corporate governance standards during the shareholder meeting, signaling confidence that the leadership vacuum has been filled.

Dividend Payout Lands Amid Steep Share Decline

Shareholders will receive a dividend of €2.50 per share on Friday, representing a 6.38 percent increase from the previous year. The payout comes as the stock trades deep in the red. SAP shares climbed roughly 2 percent on Thursday to €151.30, but the year-to-date decline stands at around 25 percent. From the 52-week high of €271.60, the stock has fallen more than 43 percent.

The company is also supporting its share price through buybacks. SAP will repurchase its own shares for up to €2.6 billion through the end of July, providing a short-term cushion against further downside. The relative strength index currently sits at 75, indicating a mildly overbought condition.

Cloud Revenue Surges as AI Spending Ramps Up

The dividend and buyback programs are underpinned by solid operational performance. Cloud revenue rose 27 percent on a currency-adjusted basis in the first quarter, reaching nearly €6 billion. Operating profit climbed to €2.87 billion. Management has maintained its full-year guidance, though it expects some moderation in cloud growth during the second quarter as one-off effects fade.

The leadership transition coincides with a costly strategic pivot. SAP has signed a binding agreement to acquire AI lab Prior Labs, with plans to invest more than €1 billion over the next four years. Separately, the company announced the purchase of data-lakehouse platform Dremio. Both acquisitions are designed to accelerate the development of advanced data models and agentic AI capabilities.

Obermann takes the reins of a company navigating expensive AI investments, a bruised share price, and a market that remains skeptical despite strong underlying fundamentals. The next few years will test whether his experience steering Deutsche Telekom through a major transformation can translate to the software world.