Twitter Board Expresses Confidence In CEO Jack DorseyNovember 10, 2020
Twitter Inc. Chief Executive Officer Jack Dorsey will continue in his role after its Board expressed confidence in the current structure. The Board’s decision follows recommendations by a Board committee that reviewed the company’s leadership and management structure.
In a regulatory filing with the U.S. Securities and Exchange Commission, the Board said, “The committee expressed its confidence in management and recommended that the current structure remain in place.”
The Management Structure Committee, chaired by Patrick Pichette, evaluated Twitter’s leadership and Board structure, the CEO succession plan, and made recommendations regarding the elimination of Twitter’s Company’s staggered board.
Twitter will also add a proposal to the 2021 shareholders’ meeting to amend its Certificate of Incorporation and Bylaws to eliminate its classified board structure. At each election following the 2021 meeting, Twitter’s directors will be elected for a one-year term, while directors who have multiple-year terms will continue to serve those terms until they expire.
The committee, formed in connection with a cooperation agreement with activist hedge fund Elliott Investment Management and private equity firm Silver Lake, also assessed the new operating plan and procedures put in place by the CEO.
Further, the company’s significantly improving product, operational and financial performance through the most recently reported quarter were also analyzed. In the latest third quarter, the company had reported revenue growth of 13.7 percent to $936.23 million.
In March, Twitter and Elliott Management had reached a peace deal that allowed Dorsey, who is also co-founder of the company, to continue as CEO.
Elliott Management, after buying a sizable stake in Twitter, had pushed for several changes at the company, including the replacement of Dorsey. Elliott was concerned about Dorsey’s lack of enough focus on Twitter as he is also chief executive officer of payments company Square, Inc (SQ).
The Board’s initiatives include its decisions to install an independent Chair of the Board and to continue improving Board diversity.
Twitter also announced that its previously-authorized share repurchase program will commence this quarter.
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