SAP rolls out €70M stock plan to retain top talent amid bonus backlash
SAP is responding to internal criticism of its compensation system by sweetening the deal for its most in-demand employees. According to a report by Manager Magazin, the DAX-listed company has introduced an additional stock-based compensation package worth around €70 million to retain top performers.
The move follows frustration over a revised bonus system that left parts of the workforce feeling shortchanged, increasing pressure on management to make adjustments. In a tight labor market for AI and software talent, the dissatisfaction posed a significant risk.
The new system focuses on targeted incentives: select "high performers" will reportedly receive additional stock awards. According to the works council, the measure is aimed at employees with a "high risk of leaving" who also hold "business-critical roles." Roughly €20 million of the total sum is earmarked for staff in Germany.
The goal is to remain competitive in the global race for top talent. Competitors, particularly in markets like the U.S., offer significantly higher salaries, the company acknowledges. Stock-based compensation is intended to help bridge that gap—at least in part—and secure key employees for the long term.
A SAP spokesperson confirmed to Manager Magazin that the company had identified additional opportunities to optimize stock-based compensation for non-executive staff. However, the firm has not disclosed details on the exact distribution or size of individual packages.
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