Adobe made a major announcement on Thursday, stating its CEO Shantanu Narayen will step down after a successor has been appointed.
The company’s shares plunged to 7% in extended trading following the announcement.
Narayen joined Adobe in 1988 as a vice president and general manager (GM). In 2007, he became the CEO of the company.
Under the leadership of Narayen, Adobe pushed its boundaries towards excellence in many ways, from software licenses to subscriptions to its Creative Cloud application bundle, with broader plans to expand through generative artificial intelligence.
Adobe’s lead independent director, was quoted in the statement, saying, “On behalf of the Board, I want to recognize Shantanu’s contributions as CEO and architect of Adobe’s transformation over the past 18 years, and for positioning Adobe for success in the AI-driven era,”
“As we take the next step in succession planning, we are focused on selecting the right leader for this next exciting chapter of the company’s growth and are grateful for Shantanu’s continued leadership as CEO to ensure a smooth transition,” Frank added.
In a memo to employees, Narayen said that he’s staying on the board to support the next Adobe CEO, stating, “What attracted me to Adobe 28 years ago was our leadership in creating new market categories, world-class products, a relentless desire to innovate in every functional area of the company and the people I met during the interview process.”
“We have continued to create new markets, deliver world-class products, drive innovation in everything we do and attract and retain the best and brightest employees,” Narayen added.
Adobe’s CEO search is likely to take some more months.
