Apple Inc has announced that Kevan Parekh will take over as its chief financial officer (CFO) from January.
The Indian-origin executive will replace Luca Maestri as part of a "planned succession" and join the executive team, the Cupertino-based tech giant said. Parekh is now the vice-president of financial planning and analysis at the company.
“For more than a decade, Kevan has been an indispensable member of Apple’s finance leadership team, and he understands the company inside and out. His sharp intellect, wise judgment, and financial brilliance make him the perfect choice to be Apple’s next CFO,” Apple CEO Tim Cook said on August 27.
Who is Kevan Parekh?
Parekh had joined the tech firm in June 2013 from Thompson Reuters, where he had served in various positions for four years. Before that, he worked at General Motors for over five years. The electrical engineer holds a Bachelor’s of Science degree from the University of Michigan and an MBA from the University of Chicago.
What is Parekh’s current role at Apple?
Parekh has been part of Apple Inc for 11 years and currently leads financial planning and analysis, G&A and benefits finance, investor relations, and market research. He had earlier led worldwide sales, retail, and marketing finance. He began his tenure leading the financial support of Apple’s product marketing, internet sales and services, and engineering teams.
According to Bloomberg, Maestri has been grooming Parekh to eventually take over as there has been no equivalent outside hire in the CFO’s office yet. He is not a well-known name but he is considered to be instrumental at Apple who often reports directly to Cook on important financial and sales matters. Recently, Parekh also took over the responsibilities of former Apple finance executive Saori Casey after she left to join Sonos Inc as its CFO.
Parekh has increasingly attended private meetings with Apple financial analysts and partners. Maestri said on Monday that he has “enormous confidence” in his successor.
How did the market react to the news?
Apple shares fell as much as 1.7 percent in late trading, but regained most of the ground. The transition will likely be a smooth one, according to Bloomberg Intelligence analysts Anurag Rana and Andrew Girard. The change “appears to us to be part of a normal management-planning move”, they said in a note.
More Indian-origin leaders in the offing
Apple’s management team is likely due for more changes in the foreseeable future. Many of the executives are around 60 years old and have been at the company for decades.
According to Bloomberg, India-born Sabih Khan is likely to replace Jeff Williams, the chief operating officer of Apple. Khan has already taken the spot left by top designer Jony Ive.
Khan’s promotion could see Priya Balasubramaniam fill his position as the senior vice-president of operations.
Moreover, Johny Srouji, who leads hardware technologies organisation, could be replaced by Sri Santhanam, according to Bloomberg.
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