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Although rotating CEO structures are unusual for companies around the world, analysts say they not only encourage teamwork and prevent leadership lock-in, but also foster the next generation of talent. states that it is possible.
The plan is in response to repeated calls from investors to strengthen corporate governance by separating the CEO role from the chairman, one of the people said. That’s what it means.
Young Liu has held both positions since 2019 at the 50-year-old Taiwanese company, which is the world’s largest contract electronics manufacturer and leading iPhone assembler.
Senior executives at Foxconn, which also counts Amazon.com as a customer, have been discussing a rotating CEO plan for months, three sources with direct knowledge of the matter said. All requested anonymity due to confidentiality.
Foxconn declined to comment.
Two of the three sources said one option being considered is having four CEOs rotated every six months at a time. He said details have not yet been finalized and are subject to change.
All three sources said Foxconn management is in discussions about how the proposed system would work, candidates for the replacement CEO role, their responsibilities and how to work with Mr. Liu. He said that no final decision had been made.
The replacement CEO will oversee Foxconn’s six core businesses, which include smartphones, personal computers and television, as well as Foxconn Interconnect Technology, FIH Mobile and Foxconn, one of the people said.・Businesses of major listed subsidiaries such as Industrial Internet are not included.
Another source said the changes establish a structure in which top executives rotate to oversee Foxconn’s operations, which include hundreds of subsidiaries and operations in more than 20 countries, ending Foxconn’s “one-man rule” structure. He said there was a possibility of being hit.
Mr. Liu became chairman and chief executive officer following the retirement in 2019 of billionaire founder Terry Gou, who founded the company in 1974 and held both titles for most of his tenure. He took over the role of CEO.
Chinese technology giant Huawei introduced a rotating CEO system in 2011, with three top executives taking turns as acting CEO for six months.
Huawei’s Meng ends her role as rotating chairman after 5G smartphone success
Huawei’s Meng ends her role as rotating chairman after 5G smartphone success
Shares in Foxconn, officially known as Hon Hai Precision Industry, have risen nearly 50% so far this year, compared with a 16% rise in major indexes, thanks in part to the artificial intelligence boom.
Foxconn in March adopted a more bullish outlook for this year, saying it expected revenue to increase significantly due to demand for artificial intelligence servers.
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