Sources say Foxconn is considering introducing a rotating CEO system to strengthen corporate governance

According to Reuters, Apple foundry Foxconn is considering introducing a rotating CEO system. This move is seen as one of its major management reorganization measures to cultivate future leadership talents.

The rotating CEO system is not common around the world, but analysts believe that this move can promote teamwork and prevent leadership from Consolidate and cultivate the next generation of talents.

Liu Yangwei has served in both roles since 2019, leading the 50-year-old Taiwanese company, which is also the world's largest contract electronics manufacturer and a major iPhone assembler . The plan comes in response to investor calls for stronger corporate governance and separation of the chief executive and chairman roles.

Data Three people familiar with the matter said Foxconn’s top executives have discussed the CEO plan for months. Two of the sources said one option under consideration is to appoint four CEOs, each serving six-month terms, on a rotating basis. They said the succession has not yet been finalized and is subject to change.

All three sources said that no final decision has been made as Foxconn management is still discussing how the proposal will work, the interim choice of rotating CEOs, their responsibilities and how they will work with Liu Yangwei. Decide.

One of the sources said that he will be responsible for overseeing Foxconn’s six core businesses, including smartphones, personal computers and TVs, but does not include major listings such as Foxconn Connector Technology, FIZH Mobile and Foxconn Industrial Internet. Operations of Subsidiaries.

Another source said that this move may mark the end of Foxconn’s “one-stop shop” system, and will be replaced by a system that allows managers to take turns overseeing Foxconn’s hundreds of subsidiaries in more than 20 countries/regions. The operating structure of the company and branches.

In 2019, Liu Yangwei started his career in a company and became the CEO and COO. Liu Yangwei founded the company in 1974 and held both positions during his tenure.

This site noticed 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.

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