Foxconn introduces rotating CEO role to groom successors

Foxconn’s leadership transition: Foxconn, the world's largest contract electronics manufacturer based in Taiwan, has initiated a new leadership structure this month, implementing a rotating chief executive system. Chairman Young Liu announced this overhaul of management as part of a strategic move to groom successors within the organisation.

Last week, Reuters reported exclusively that Foxconn, a key supplier for Apple, was contemplating the introduction of a rotating chief executive system. The decision aims to improve corporate governance by separating the roles of chief executive and chairperson, while also focusing on nurturing future leaders.

Addressing inquiries from reporters in Taipei, Liu underlined the importance of succession planning for Foxconn's sustainable development. He highlighted how the rotating chief executive system could facilitate the cultivation of talent within the company.

Under this new system, an executive has been selected to assume the role of rotating CEO from among the leaders of Foxconn's six core businesses, including smartphones, personal computers, and televisions. However, Liu did not disclose the identity of the executive appointed to this position.

Liu, who has served as both chairman and chief executive since 2019, explained that the rotating CEOs would oversee the core businesses but would not manage the operations of major listed subsidiaries such as Foxconn Interconnect Technology, FIH Mobile, and Foxconn Industrial Internet.

This transition comes after the retirement of Foxconn's billionaire founder, Terry Gou, in 2019, who held both the chairman and CEO positions for much of his tenure. Sources familiar with the matter suggest that this change signifies a departure from the previous "one-man rule" system, ushering in a more collaborative approach where managers take turns overseeing Foxconn's extensive operations spanning hundreds of subsidiaries across more than 20 countries.

(With Reuters inputs)