Icebreaker founder Jeremy Moon is handing the chief executive role to Rob Fyfe so he can concentrate on his design and product development strengths.
Mr Fyfe, the former head of Air New Zealand, has been executive chairman of the merino clothing manufacturer's board since last year but will take over as chief executive.
Mr Moon said it has been a rollercoaster of emotion in deciding to hand over the top job to someone else but that Mr Fyfe was the right choice.
"The last few years, it's just go so much bigger and more complex, so I'm thinking how can I really play to my strengths as someone who's passionate about design and product and people, yet there's so much commercial complexity and challenge and business opportunity, and you kind of can't do both," he said.
"So we've come up with the arrangement where Rob is incredible as a CEO and that also gives me the space to really fulfil the type of role that really inspires me."
The company had no plans to list, as being a private company meant they could do things at their own pace and control their own destiny, Mr Moon said.
"We're kind of enjoying the space and the freedom that being a private company allows," he said.