SAP awards hefty option boost to execs, plans 5% dividend rise

Business planning software giant SAP raised the long-term stock options awarded to senior executives in 2015 while the company's board recommended a 5% rise in its annual dividend, according to company documents published on Tuesday.

Chief executive Bill McDermott received compensation for 2015 including salary, benefits and short-and long-term incentives of 9.28 million euros ($10.40 million), up nearly 15% over 2014, according to SAP's annual report.

In addition, McDermott received restricted stock options under a three-year-plan that had a face value of 8.32 million euros as of the end of last year. But the eventual value of the grant will vary according to the company's stock price.

SAP executive compensation, while high by German corporate standards, remains modest compared to US software peers. Silicon Valley arch-rival Oracle paid $53 million each in total compensation to co-CEOs Safra Catz and Mark Hurd for fiscal year 2015, according to filings.

The option awards were based on McDermott meeting 112.96% of the company's key performance indicators in 2015. By contrast, the CEO met 77.9% of his targets in 2014 and 93% in 2013, according to company filings.

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