Adobe CEO Shantanu Narayen to step down following successor appointment

Adobe announced that CEO Shantanu Narayen will resign once a new successor is found, and he will continue as the chairman of the design software company. Shares fell 7% in after-hours trading.

Narayen started working at Adobe in 1988 in the role of vice president and general manager before becoming CEO in 2007. 

Under his leadership, Adobe transitioned from selling software licenses to offering subscriptions for its Creative Cloud suite. 

The company is now planning to expand through generative artificial intelligence. Although he attempted to buy the rapidly growing design software firm Figma, regulatory issues led to the companies cancelling the merger, costing Adobe a $1 billion termination fee to Figma.

"On behalf of the Board, I acknowledge Shantanu's leadership as CEO and his pivotal role in Adobe's transformation over 18 years, positioning it for success in the AI-driven environment," said Frank Calderoni, Adobe's lead independent director, in a statement. "While we proceed with succession planning, our priority is identifying the most suitable leader for Adobe's forthcoming growth phase. We extend our gratitude to Shantanu for his ongoing leadership, ensuring a seamless transition."

Narayen, aged 62, serves as lead independent director at Pfizer besides his duties at Adobe, receiving a total compensation of $51 million for fiscal year 2025, per a filing. He holds $118 million in Adobe stock, as reported by FactSet.

In a memo addressed to staff, Narayen stated he will stay on the board to aid the next CEO, similar to how co-founders John Warnock and Charles "Chuck" Geschke supported him when he took over as CEO.

During Narayen's tenure, Adobe's stock increased more than sixfold, while the S&P 500 rose approximately 350% in the same timeframe.