Premji's term extended as chairman

The board of directors of Wipro, the second largest IT company in the country, has extended Azim Premji's term as chairman of the board for two years and seven months for the period from December 2004 to July 2007, subject to shareholders' approval in the next Annual General Meeting.

According to a statement issued to the National Stock Exchange on Tuesday by the company, his designation has been changed from chairman and managing director of the company, to just chairman. No one has been designated managing director.

According to sources within the company, the change in designation does not imply any change in the role or responsibilities of Premji who will continue to be the executive chairman. The `managing director' appellation was removed since the board felt that it was too reflective of public sector nomenclature.

The media had reported earlier on Wipro's annual HR review in which succession plans and the retirement age of senior managers, including that of Premji, are reviewed.

Sources said that the period of extension varied from 2-4 years. Premji, who is 59, had spoken about possible succession way back in 1998, saying that there was a lot of talent within Wipro itself and outlining the modalities of the succession plans for the top 10 per cent of Wipro's staff.

Premji holds close to 85 per cent of Wipro's stock.