The board of Infosys is expected to initiate discussions on CEO succession this week, as incumbent chief executive Salil Parekh approaches the final phase of his current term, as per reports from Economic Times. Parekh's five-year term as CEO ends in March 2027. However, given Infosys' superannuation norms and the need for leadership continuity, the board is likely to grant him a limited extension of up to two years to oversee a structured transition.
According to sources, Infosys follows a normal retirement age of 60, and Parekh, 61, is unlikely to be offered another full five-year term. “There cannot realistically be more than a two-year extension. That time will be used to run and manage the succession process,” one of the people said, adding that the board is keen to avoid the instability associated with earlier leadership changes, ET reported.
ALSO READ: What Does Infosys Stand To Gain From Deals In US Healthcare Market? Expert Weighs In
The leadership discussion is expected to take place at the Infosys board meeting scheduled for Thursday, when the company will announce its fourth-quarter FY26 results.
A smooth management transition is seen as critical for Infosys at a time when the global IT services industry is grappling with AI-driven disruption, deal slowdowns, and pricing pressures. Infosys shares have already declined more than 25% from their peak valuations, making leadership clarity a priority for investors, ET reported.
Under Parekh's leadership, Infosys' market capitalisation has risen to about Rs 5.44 lakh crore, more than doubling during his tenure. His time at the helm is widely viewed as a period of stability following years of leadership churn.
Infosys has previously seen senior-level exits during CEO transitions. The return of founder NR Narayana Murthy in 2014 and the subsequent appointment of Vishal Sikka triggered multiple rounds of top-level departures, ET noted. Parekh and chairman Nandan Nilekani are credited with restoring operational stability after that phase.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
