Sage appoints CFO Hare as new boss to deal with competition threat

Hare becomes CEO immediately as the accounting software provider seeks to shore up its business against competitors. He replaces Stephen Kelly who stood down on 31 August following a profit warning in April.

Some analysts feel Sage has done little to deal with a competitive squeeze from cheaper new entrants and higher-end rivals taking its business, with Deutsche Bank downgraded Sage to ‘Sell’ in August. The FTSE 100 company’s shares have fallen heavily this year.

Hare joined Sage’s board as CFO in 2014 from private equity firm Apax Partners and became interim chief operating officer after Kelly quit. Hare will combine his CEO and CFO roles until the company finds a new finance chief.

Donald Brydon, Sage’s chairman, said: “Steve has impressed the board with the momentum, focus and clarity he has brought to the organisation over the last few months. As we looked externally for the experience, vision and deep knowledge required to accelerate operational execution it very quickly became clear through Steve's early decisions and his clear prioritisation that he is the right person to lead Sage."

Hare’s basic annual salary will be £770,000 and he will get a bonus and long-term incentive plan payments depending on performance.