Feeds

SAP tosses out stock-linked sweeteners to staff

Work harder, don't leave, and make us cloudy!

Internet Security Threat Report 2014

CeBIT SAP employees will continue to bag cash incentives in the form of phantom stocks as the enterprise computing behemoth works harder to hang onto valuable talent.

“I do believe it makes a lot of sense to have incentive programmes for the employees as well, which make them interested in the share price of the company and give them an opportunity to participate in our success,” co-CEO Jim Hagemann Snabe told Businessweek at CeBIT. “This is an industry with a war for talent, and talent is the biggest differentiator for everyone in our industry.”

Phantom stocks are cash bonuses that mirror the movements of actual company shares, and then pay out within a certain timeframe – so if the firm is doing well (according to the markets anyway), staff get a good bonus.

SAP wants to keep a firm hold on its talent as it moves more into cloud-based offerings for its mainstay enterprise resource planning (ERP) and customer relations manager (CRM) software.

Old guard enterprise software companies like SAP and its major rival Oracle are having to move fast into the cloud as companies ditch long-term licences in favour of the flexibility and mobility of fluffy offerings.

Co-CEOs Snabe and Lars Dalgaard announced at CeBit yesterday that the firm is planning to provide its Business One application – which combines several pieces of enterprise management software into one – as an on-demand cloud service.

The move should make SAP more accessible for small and mid-size firms that wouldn't be prepared to invest in any of the company's big ticket, long-term software.

"Small companies with little infrastructure and outsourced IT are expecting cloud offerings, sometimes in easy combination with their existing software," Eric Duffaut, president of ecosystem and channels at SAP, said in a canned statement.

"Together with our partners, SAP is committed to providing customers of all sizes with choice and a solution that fits their needs. Now, small companies can use SAP Business One on-premise or in the cloud to run their businesses better."

Snabe told Businessweek that SAP's cloud business would "certainly" break even before reaching a 2015 sales target of €2bn. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.