Xero founder Rod Drury is stepping down after 12 years as chief executive of the accounting software firm.
He will be replaced by Fletcher Building director Steve Vamos from next month, the Board of Xero Limited has announced.
"Over the past 18 months Steve has worked closely with Xero's executive team developing its management capability and operating model," a statement reads.
Xero Chair Graham Smith says "succession planning" has been high on the board's agenda.
"With the business performing strongly, we believe the time is right to make the transition at CEO level.
"We believe Steve Vamos brings an invaluable skill set to lead Xero. He has worked in some of the world's largest tech companies and is a recognised, purpose-driven people leader, with a focus on growth and operational excellence."
Mr Drury will continue as a non-executive director with a focus on innovation and strategy.
The company has a subscriber base of more than 1.2 million - which Mr Drury says is "amazing" to comprehend.
"We started with just four people in a small Wellington apartment and we now have over 2,000 people across 17 offices in eight countries.
"I'm so proud of the Xero team, the community that's formed around us, the positive impact we've had on our customers, and the shareholder value we've created."
Mr Vamos will start his new position on April 1.