Foxconn’s Musical Chairs Sound Like Punk Rock
The manufacturing giant needs to dance to a new beat, and a bold approach in the C-suite is a good place to start.
An end to one-man rule?
Photographer: I-Hwa Cheng/BloombergOnly two people have ruled over Foxconn Technology Group in the 50 years since it was founded. Now, as many as six more could be added to the roster in the space of three years. This game of executive musical chairs is risky, but given the upside such a punt may be worth it.
Chairman Young Liu, who also holds the chief executive officer role, is working on plans to rotate the leaders of various business units through the latter position, most likely for six-month terms. The new system started in April on a trial basis, with more details likely to emerge at Foxconn’s shareholders meeting in June. It’s an unusual strategy, undertaken by few companies and none with annual revenue approaching $200 billion. In music terms it’s more punk rock — hard-edged, punchy and eschewing corporate orthodoxy — than classical.