Apple supplier Foxconn introduces rotating CEO role

Foxconn Interconnect Technology

17/04/2024 10:02

TAIPEI, April 17 (Reuters) - Taiwan's Foxconn  2317.TW 
has this month started a rotating chief executive system in an
overhaul of its management designed to nurture successors of the
world's largest contract electronics maker, chairman Young Liu
said on Wednesday. 
    Reuters exclusively reported last week that major Apple
 AAPL.O  supplier Foxconn was considering introducing a rotating
chief executive system in a move to boost corporate governance
by separating the role of chief executive from the chairperson
as well as to develop future talents. 
    Responding to reporters' questions in Taipei, Liu said in
order to have sustainable development Foxconn must have
"succession planning" in place and that the rotating system
could help develop future talents.
    Liu said Foxconn has chosen an executive to fill that role
from among leaders of its six core businesses, which include
smartphones, personal computers and televisions. He did not say
who has taken on the new role.
    "Through the rotation they can further understand operations
of the company," Liu said. 
    Liu, who has held both roles of chairman and chief executive
since 2019, said the rotating CEOs will oversee the core
businesses but exclude the operations of major listed
subsidiaries such as Foxconn Interconnect Technology  6088.HK ,
FIH Mobile  2038.HK  and Foxconn Industrial Internet
 601138.SS .
    Liu took on the chairman and CEO roles following the
retirement in 2019 of billionaire founder Terry Gou, who founded
the company in 1974 and had both titles during most of his
tenure.
    One source briefed on the matter has told Reuters the change
could mark the end of a "one-man rule" system in Foxconn by
establishing a structure in which managers take turns to oversee
Foxconn's operations that include hundreds of subsidiaries and
operations in more than 20 countries.

 (Reporting By Yimou Lee; editing by David Evans)
 ((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))