TAIPEI (Reuters) - Taiwan's Foxconn has this month started a rotating chief executive system in an overhaul of its management designed to nurture successors of the world's largest contract electronics maker, chairman Young Liu said on Wednesday.
Reuters exclusively reported last week that major Apple (NASDAQ:AAPL) supplier Foxconn was considering introducing a rotating chief executive system in a move to boost corporate governance by separating the role of chief executive from the chairperson as well as to develop future talents.
Responding to reporters' questions in Taipei, Liu said in order to have sustainable development Foxconn must have "succession planning" in place and that the rotating system could help develop future talents.
Liu said Foxconn has chosen an executive to fill that role from among leaders of its six core businesses, which include smartphones, personal computers and televisions. He did not say who has taken on the new role.
"Through the rotation they can further understand operations of the company," Liu said.
Liu, who has held both roles of chairman and chief executive since 2019, said the rotating CEOs will oversee the core businesses but exclude the operations of major listed subsidiaries such as Foxconn Interconnect Technology, FIH Mobile and Foxconn Industrial Internet.
Liu took on the chairman and CEO roles following the retirement in 2019 of billionaire founder Terry Gou, who founded the company in 1974 and had both titles during most of his tenure.
One source briefed on the matter has told Reuters the change could mark the end of a "one-man rule" system in Foxconn by establishing a structure in which managers take turns to oversee Foxconn's operations that include hundreds of subsidiaries and operations in more than 20 countries.