Apple supplier Foxconn is contemplating the introduction of a rotating chief executive system as part of a significant restructuring of its management framework, aimed at nurturing future talent, Reuters news report said.
While the concept of rotating chief executives is relatively uncommon among global companies, analysts suggest it can foster collaboration, prevent leadership from becoming entrenched, and facilitate the development of the next generation of leaders, the report said.
The proposed plan is in response to calls by investors to enhance corporate governance by separating the roles of chief executive and chairperson. Currently, Young Liu has held both positions since 2019 in the 50-year-old Taiwanese company. Foxconn is the world’s largest contract electronics manufacturer and a key iPhone assembler.
Foxconn has reported revenue of NT$6.162 trillion (down 7 percent), gross profit of NT$387.9 billion (down 3 percent), operating net profit of NT$166.5 billion (fell 4 percent) and net profit of NT$142.1 billion (up 0.4 percent) for 2023.
Senior managers at Foxconn, whose clientele includes tech giants like Amazon, have been discussing the rotating CEO concept for several months. Foxconn declined to provide any comments regarding these developments.
One option under consideration is to appoint four CEOs on a rotational basis, each serving for six-month terms.
While no final decision has been reached, discussions within Foxconn management are ongoing regarding the implementation of the proposed system, potential candidates for the rotating CEO roles, their respective responsibilities, and their collaboration with Young Liu.
The rotating CEOs would likely be tasked with overseeing Foxconn’s six core businesses, encompassing smartphones, personal computers, and televisions, among others, but excluding major listed subsidiaries such as Foxconn Interconnect Technology, FIH Mobile, and Foxconn Industrial Internet.
Implementing a rotating CEO system could signal a departure from Foxconn’s traditional “one-man rule” structure, establishing a framework where managers alternate in overseeing the company’s operations across hundreds of subsidiaries and operations spanning more than 20 countries.
The current structure with Young Liu holding both chairman and CEO roles followed the retirement of founder Terry Gou in 2019, who had held both titles for most of his tenure. Notably, Chinese tech giant Huawei introduced a similar rotating CEO system in 2011, where three top executives take turns serving as acting CEO for six-month periods.
Profile of Young Liu
Young Liu orchestrates a strategic roadmap, notably the 3+3 strategy, targeting three pivotal industries and three cutting-edge technologies.
The three industries under focus are Electric Vehicles, Digital Health, and Robotics, while the technological forefront comprises Artificial Intelligence, Semiconductors, and Next-generation communication technologies.
Young Liu’s career spans over four decades, marked by entrepreneurial endeavors and innovative ventures. Founding Young Micro Systems in 1988, ITE Tech in 1995, and ITeX in 1997, Young Liu’s visionary leadership led to the merger of Young Micro Systems with Foxconn in 1994 and the NASDAQ listing of ITeX in 2001.
Joining Foxconn in 2007 as a Special Assistant to the Founder, Young Liu ascended the ranks, assuming pivotal roles such as General Manager of Innovation Digital System Business Group and Chairman of Socle Technology Corporation. His influence extended to Sharp Corporation’s Board of Directors in 2016 and key leadership positions within Foxconn’s subsidiaries, culminating in his appointment as CEO and Chairman of Hon Hai Technology Group in 2019.
Baburajan Kizhakedath
