- Carl Eschenbach Steps Down as Workday CEO, Hands Over to Co-Founder Aneel Bhusri
- Former leader to receive cash severance package of $3.6 million and more
- Company growth is in a good place, stock prices are not.
Workday CEO Carl Eschenbach has resigned effective immediately after about two years as a director of the company (and another year as co-CEO), and has already been replaced by Workday co-founder Aneel Bhusri, who returned to the role permanently.
A Form 8-K confirms that Eschenbach will receive $3.6 million in cash compensation plus accelerated vesting of equity awards.
Bhusri will be eligible for a base salary of $1.25 million “and an annual target cash bonus of up to 200% of the amount of his then-current base salary.”
Leadership changes at Workday come amid changing landscape
The news comes as the companies’ stock prices continue to decline – they are down about 40% year over year – and investors are concerned about Workday’s AI strategy and its susceptibility to technology influences.
Workday already eliminated around 1,750 positions, representing 8.5% of its then workforce, a year ago, framed as a need for AI-driven restructuring. A year later, another 2% reduction was confirmed.
The company has had three consecutive quarters of 12.6% revenue growth, a not-so-insignificant sum, but one that has fallen from around 15-18% in the previous two years.
“The opportunity ahead of us is always greater than the opportunity behind us. We are at a huge inflection point with AI, and there is no one better than Aneel to guide Workday through this moment and drive the vision,” Eschenbach wrote in a LinkedIn post.
He now describes himself as a strategic advisor to the CEO at the social media platform.
“Looking ahead, 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 receive news, reviews and opinions from our experts in your feeds. Be sure to click the Follow button!
And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form and receive regular updates from us on WhatsApp also.
