According to Reuters, three sources revealed that Apple OEM Foxconn is considering introducing a rotating CEO system as one of its major management reorganization measures aimed at cultivating future talents.
Rotating CEO systems are uncommon globally, but analysts believe the move can foster teamwork, prevent leadership entrenchment and develop the next generation of talent.
The plan comes in response to investor calls for stronger corporate governance and separation of the chief executive and chairman roles, sources said. Liu has held both roles since 2019, leading the 50-year-old Taiwanese company that is the world’s largest contract electronics manufacturer and a major iPhone assembler.
Foxconn’s top executives have discussed the rotating CEO plan for months, according to three people familiar with the matter. Two of the sources said one option under consideration is to appoint four CEOs, each serving six-month terms, on a rotating basis. Details have not yet been finalized and could change, they said.
All three sources said no final decision had been made as Foxconn management was still discussing how the proposed system would work, candidates for a rotating CEO position, their responsibilities and how they would work with Liu Yangwei.
One of the sources said the rotating CEO will be responsible for overseeing Foxconn’s six core businesses, including smartphones, PCs and TVs, but will not include the operations of major listed subsidiaries such as Foxconn Connector Technology, FIZhicon Mobile and Foxconn Industrial Internet. .
Another source said the move could mark the end of Foxconn’s “one-manner” system, replaced by an operating structure that would see managers take turns overseeing Foxconn’s hundreds of subsidiaries and affiliates in more than 20 countries. .
Liu Yangwei took over as chairman and CEO after company founder Terry Gou retired in 2019. Gou founded the company in 1974 and held both positions for much of his tenure.
It is noted that Huawei launched a rotating CEO system in 2011, with three executives taking turns serving as acting CEO for a six-month term.
Shares in Foxconn parent Hon Hai Precision Industry Co. have risen nearly 50% so far this year, in part due to a positive reaction to the artificial intelligence boom, while Taiwan’s main stock index has risen 16% over the same period. In March, Foxconn took a more optimistic view of this year’s market prospects, saying it expected demand for artificial intelligence servers to drive significant growth in its revenue.
