Software Companies Abandon Co-CEOs, Exposing the Model’s Risks
- SAP’s decision follows similar moves by Oracle, Salesforce
- Power-sharing at the top easier in theory than in practice
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SAP SE’s abrupt decision to scrap its co-CEO leadership structure was another vivid example from the software industry that two chief executive officers look better on paper than in practice.
SAP became the third of its peers to abandon the dual-CEO model, just six months after returning to the structure with the appointments of Jennifer Morgan and Christian Klein. The rationale at the time was that Morgan would remain in the U.S. and play a prominent role overseeing the German technology giant’s extensive American operations. Klein would be based at headquarters. Both young executives would help fill the shoes of departing CEO Bill McDermott, a charismatic American who led the company for a decade.