Taipei: Foxconn, the world's largest contract electronics manufacturer and a major supplier to Apple, has initiated a rotating chief executive system as part of a broader management restructuring aimed at grooming future leaders, chairman Young Liu revealed on Wednesday.
Last week, Reuters reported exclusively that Foxconn was contemplating a rotating CEO system to enhance corporate governance by separating the roles of chief executive and chairperson, while also focusing on talent development.
Speaking to reporters in Taipei, Liu emphasized the importance of succession planning for Foxconn's sustainable development. He stated, "In order to have sustainable development, Foxconn must have succession planning in place," adding that the rotating system would facilitate the development of future talents.
Liu disclosed that an executive has been selected to assume the rotating CEO position from among the leaders of Foxconn's six core businesses, which encompass smartphones, personal computers, and televisions. However, he did not identify the individual who has taken on this new role.
"Through the rotation, they can further understand the operations of the company," Liu explained.
Since 2019, Liu has concurrently held the positions of chairman and CEO. He succeeded billionaire founder Terry Gou, who retired that year. Gou had served as both chairman and CEO since founding Foxconn in 1974.
The rotating CEO arrangement will focus on overseeing Foxconn's core businesses, excluding major listed subsidiaries like Foxconn Interconnect Technology, FIH Mobile, and Foxconn Industrial Internet.
A source familiar with the matter told Reuters that this change could signify the end of Foxconn's "one-man rule" system, introducing a structure where executives take turns overseeing the company's extensive operations, which span hundreds of subsidiaries and operate in over 20 countries.