- Carl Eschenbach steps down as Workday CEO and hands over to co-founder Aneel Bhusri
- Former executive to get $3.6 million cash severance package plus more
- The company’s growth is in a good place, the stock prices are not
Workday CEO Carl Eschenbach has stepped down effective immediately after about two years at the head of the company (and another year as co-CEO), and he has already been replaced by Workday co-founder Aneel Bhusri, who has returned to the role on a permanent basis.
A Form 8-K confirms that Eschenbach will receive $3.6 million in cash severance plus accelerated vesting of stock awards.
Bhusri will be eligible for a $1.25 million base salary “and an annual targeted cash bonus of up to 200% of the amount of his then-current base salary.”
Management changes in everyday life happen in the middle of a changing landscape
The news comes as the company’s share price continues to slide – down around 40% year-on-year with investors worried about Workday’s AI strategy and its susceptibility to the technology’s impacts.
Workday has already cut about 1,750 roles, accounting for 8.5% of its then-headcount, a year ago, framed as an AI-driven restructuring. A year later, another reduction of 2% was confirmed.
The company has had three straight quarters of 12.6% revenue growth – not an insignificant sum, but one that’s down from around 15-18% in the previous two years.
“The opportunity ahead is always greater than what lies behind. We are at a massive inflection point with AI, and there is no one better than Aneel to lead Workday through this moment and drive the vision forward,” Eschenbach wrote in a LinkedIn post.
He now describes himself as a strategic advisor to the CEO of the social networking platform.
“Looking forward, Workday is entering a new chapter that will be defined by AI and innovation,” Bhusri shared in a separate LinkedIn update.
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews and opinions in your feeds. Be sure to click the Follow button!
And of course you can too follow TechRadar on TikTok for news, reviews, video unboxings, and get regular updates from us on WhatsApp also.
