Foxconn Plans For Rotating Chief Executive System

Taiwanese electronic major Foxconn is planning to introduce a rotating chief executive system as a part of its management restructuring which aims to nurture future talent within the organisation, according to a media report on Thursday.

For companies around the world, the rotating chief executive structure is uncommon, which involves periodically rotating individuals in the CEO role and allowing multiple executives the opportunity to lead the organisation.

The report mentioned that Foxconn is contemplating the adoption of a rotating chief system, as investors are persistently recommending this move to improve the company's governance by separating the role of the chief executive from the chairperson.

Currently, Young Liu has been serving as the CEO and Chairman of Foxconn since 2019.

The report added that the company is likely to have four CEOs on a rotating schedule every six months, with the specifics still pending analysis and subject to potential changes before finalisation.

Foxconn has yet to finalise the details regarding the proposed system, including the candidates' names, their new responsibilities and their workings with Liu. 

Meanwhile, according to reports the rotating CEOs will be responsible for supervising Foxconn's six primary enterprises, encompassing smartphones, personal computers and televisions. However, it is important to note that this oversight does not extend to the activities of prominent listed subsidiaries like Foxconn Interconnect Technology, FIH Mobile and Foxconn Industrial Internet.

Foxconn has not officially confirmed this system change.