Apple supplier Foxconn introduces rotating CEO position in management reshuffle

Foxconn is the world’s largest electronics contract manufacturer

Taipei:

Taiwan’s Foxconn launched a rotating chief executive system this month to overhaul its management and aim to cultivate successors at the world’s largest electronics contract manufacturer, Chairman Liu Yang said on Wednesday.

Reuters exclusively reported last week that major Apple supplier Foxconn is considering introducing a rotating CEO system, a move aimed at improving corporate governance and cultivating future talent by separating the roles of CEO and chairman.

When answering reporters’ questions in Taipei, Liu said that for Foxconn to develop sustainably, it must have a “succession plan” and that the rotation system will help cultivate future talents.

Liu said Foxconn has selected an executive from among the leaders of its six core businesses, including smartphones, personal computers and televisions, to fill the position. He did not say who would take on the new role.

“Through job rotation, they can learn more about the company’s operations,” Liu said.

Liu, who has served as chairman and CEO since 2019, said the rotating CEO will be responsible for the core business, but does not include the operations of major listed subsidiaries such as Foxconn Internet Technology, FIZH Mobile and Foxconn Industrial Internet.

Billionaire founder Terry Gou founded the company in 1974 and served as both chairman and CEO for much of his tenure, with Liu serving as chairman and CEO following his retirement in 2019.

A source familiar with the matter told Reuters the change could mark the end of Foxconn’s “one-man rule” system, by creating a structure in which managers take turns overseeing Foxconn’s operations, which include hundreds of subsidiaries and more than 20 business department. nation.

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