In a surprising move, the Chief Executive Officer of the prominent Newcastle-headquartered software company has stepped down from his position.
Stephen Kelly, the CEO of the London Stock Exchange-listed company, has resigned from his role. Kelly is on garden leave for the first nine months of his 12-month notice period but will remain available to the group until 31st May 2019. The search for his successor has already commenced.
According to Donald Brydon, the chairman, Kelly’s tenure was marked by significant transformation. Brydon commended Kelly for his ‘relentless focus on customers’ and his efforts in steering the company towards becoming a leading Software-as-a-Service (SaaS) business. ‘The board remains fully supportive of the overall strategy. We wish Stephen well in the next phase of his life,’ Brydon stated.
During this transition period, Chief Financial Officer Steve Hare has been appointed interim Chief Operating Officer, with full executive authority to manage the company’s operations until a new CEO is appointed. Sage reiterated its commitment to evolving into a SaaS business, driven by Sage Business Cloud, and is specifically seeking a new CEO with expertise in embedding sustainable processes at scale.
Kelly expressed pride in his role, highlighting his efforts in transforming the organisation and positioning it as a ‘champion of entrepreneurs and a voice of business heroes.’ He reflected on his four-year tenure, noting the cultural transformation and growth of Sage Business Cloud to £386 million of annualised recurring revenue. Kelly also mentioned the increase in total shareholder return for the company, which doubled that of the FTSE100 during his leadership.
It was disclosed that Kelly would be eligible for a bonus for the 2017/18 financial year but will not receive a bonus for 2018/19.
The resignation of Stephen Kelly marks the end of a transformative period for the company, as it continues its journey to becoming a leading SaaS provider.