Infosys has quietly initiated a CEO succession process, even as current chief Salil Parekh continues in the role.
The board is likely to consider only a short extension (around 2 years) for Parekh to ensure a smooth, planned leadership transition.
While internal and external candidates are being evaluated, no clear successor has emerged yet, keeping the leadership question open.
The board of Infosys is expected to take up the question of leadership succession at its meeting as its incumbent CEO Salil Parekh, 61, is unlikely to receive a full third five-year term, given that the normal retirement age at the firm is 60.
Parekh's current term ends in March 2027. Rather than a full extension, he is expected to receive a two-year continuation, which would be used to oversee and manage an orderly succession process, according to a report by the Economic Times.
1 April 2026
Get the latest issue of Outlook Business
Notably, the board is also scheduled to meet on Thursday, April 23 to announce its fourth-quarter FY26 earnings.
Stability over Disruption
A key reason behind the measured approach is Infosys' desire to avoid the kind of management turbulence that accompanied previous leadership changes at the company. Parekh formally took charge on January 2, 2018, and his tenure has been marked by considerable stability.
Under his watch, Infosys' market capitalisation has grown more than two-and-a-half times to ₹5.44 lakh crore. The company's stock has risen from ₹520 on the last trading day of 2017 to ₹1,314.50 on the National Stock Exchange, even as AI-driven disruptions have weighed on valuations across the technology services sector. The stock's all-time high was around ₹2,000 in December 2024.
What the Contracts Say
Parekh's latest employment contract, signed in 2022 at the start of his second term, states that he would "retire from the company on March 31, 2027." His original 2017 agreement had set the retirement age at 60, noting that he would retire upon reaching that age "unless the company agrees to continue to employ" him. Parekh has already crossed that threshold.
Recent media reports have also suggested that Parekh could move into the Chairman's role after his truncated third term concludes. The ET reported that Parekh himself is not keen on a full third term — he would be nearly 68 by the time it ended — but remains focused on ensuring a smooth handover.
Lessons from Past
The emphasis on continuity stems in part from the disruptions that past leadership transitions brought to Infosys. In 2014, the return of founder NR Narayana Murthy led to the exit of several senior executives, as it became evident the company was looking outside for its next leader. When Vishal Sikka subsequently joined as CEO, his decision to bring in senior officials from Silicon Valley triggered another wave of departures.
Parekh's tenure, by contrast, brought stability to the company. He worked closely with Nandan Nilekani to manage the overhang of the Sikka years, and preserving that stability remains a priority, the Economic Times reported.
