Henning Kagermann, chief executive officer (CEO) of business software maker SAP AG, is expected to renew his contract for another year after it expires in December 2007, according to a source familiar with the situation.
"If the supervisory board asks Kagermann to continue, he will," the source said.
SAP co-founder and chairman of the supervisory board, Hasso Plattner, said in an interview with the Süddeutsche Zeitung, published Wednesday, that he would like Kagermann to continue "for at least another year."
Kagermann turns 60 in July. SAP's personnel policy requires the supervisory board to negotiate and, if everyone is in agreement, renew contracts of all members of the executive board aged 60 or older on a year-to-year basis. The company has no maximum age limit.
The supervisory board plans to meet next month, and one of the points on the agenda is Kagermann's contract, SAP spokesman Frank Hartmann said.
Plattner's expressed wish to retain Kagermann is likely to deflate recent speculation of Léo Apotheker, SAP board member and president of global field operations, and Shai Agassi, president of the company's product and technology group, taking over as a dual-CEO team.
SAP plans a news conference on Jan. 24 to announce its fourth-quarter results.