 "Foxconn is a major Applier supplier. Source: Reuters")
Taiwanese manufacturing giant and Apple supplier Foxconn has come up with a rotating chief executive system that’s set to revamp the company’s management style, according to a Reuters.
The new system would separate the role of Foxconn’s chairperson and the CEO. Currently, Young Liu serves as both the Chairman and CEO of the company. He took over from Terry Gou, the founder of the company, in 2019. Gou also held both the titles during most of his tenure.
Earlier, Reuters cited sources to report that Foxconn was considering having four CEOs on a rotating basis of six months at a time.
The idea behind such a system is to boost corporate governance by separating the role CEO from that of the Chairperson and developing future talents for the company, according to the report.
Liu was also quoted as saying that Foxconn must have “succession planning” in place in order to have sustainable development and the rotating system could help achieve it.
While he did not name the executive, Liu said Foxconn has chosen an executive to fill that role from among leaders of its six core businesses comprising smartphones, personal computers, and televisions. He added that while the new CEO would oversee the core businesses, the company’s major listed subsidiaries like Foxconn Interconnect Technology, FIH Mobile, and Foxconn Industrial Internet will be excluded from their ambit.
Foxconn is a major Apple supplier that produces around two of every three iPhones in the world. The company also produces devices for other companies such as the Google Pixel and Sony PlayStations, according to Bloomberg.