Benzinga - by Anusuya Lahiri, Benzinga Editor.
Apple Inc (NASDAQ:AAPL) supplier Foxconn, based in Taiwan, has introduced a rotating CEO system this month as part of a comprehensive management restructuring plan to prepare for future leadership.
This significant change reveals Foxconn’s intention to separate the CEO and chairperson roles, enhance corporate governance, and cultivate emerging talents.
Chairman Young Liu, addressing the media in Taipei, underscored the necessity of “succession planning” for Foxconn’s sustained growth and mentioned that the rotating system is designed to foster the development of future leaders, Reuters reports.
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An executive from one of Foxconn’s six primary business sectors, which include smartphones, personal computers, and televisions, has been selected for this new rotational CEO role. However, the individual’s identity remains undisclosed.
Liu emphasized that the rotation would offer these leaders a deeper insight into the company’s operations.
He also noted that while the rotating CEOs would manage the core businesses, they would not be involved with the operations of principal listed subsidiaries such as Foxconn Interconnect Technology, FIH Mobile, and Foxconn Industrial Internet.
Since assuming both the chairman and CEO positions in 2019, following the retirement of Foxconn’s billionaire founder, Terry Gou, Liu has spearheaded this innovative approach.
In April, Foxconn reported first-quarter revenue of $41.2 billion, a 9.6% drop year over year and down 28.58% sequentially. The company shared plans in March to foray into the AI server market through a strategic partnership with Nvidia Corp (NASDAQ:NVDA).
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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