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Apple supplier Foxconn considers rotating CEOs in management reshuffle similar to Huawei, sources say
- Senior Foxconn managers have discussed the rotating CEO plan for several months, three sources with direct knowledge of the matter say
- Liu Young-way took on the chairman and CEO roles after the retirement in 2019 of founder Terry Gou Tai-ming, who held both titles during most of his tenure
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Apple supplier Foxconn Technology Group is considering introducing a rotating chief executive system in a major overhaul of its management structure designed to nurture future talent, three sources briefed on the matter told Reuters.
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For companies around the world, the rotating chief executive structure is uncommon, but analysts say it can promote teamwork and prevent leadership from becoming entrenched, as well as developing a next generation of talent.
One of the sources said the plan was a response to repeated calls by investors to boost corporate governance by separating the role of chief executive from the chairman.
Liu Young-way has held both roles since 2019 in the 50-year-old Taiwanese company, formally known as Hon Hai Precision Industry, that is the world’s largest electronics contract manufacturer and primary iPhone assembler for Apple.
Senior managers at Foxconn, whose clients also include Amazon.com, have discussed the rotating CEO plan for several months, the three sources with direct knowledge of the matter said. They all requested anonymity due to its sensitivity.
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