Jack Dorsey has been reaffirmed as Twitter’s Chief Executive Officer after a board committee including activist hedge fund representatives. Elliott Management We investigated the leadership structure of social media groups.
Elliott took over a 4% stake in the company in February, inciting management changes to improve performance. The composition of the “Management Structure Committee” to review Dorsey’s leadership A ceasefire agreement As a hedge fund
center Concerns Elliott was also the president of Square, a payments company he co-founded, so it was Dorsey’s split responsibility. Also, according to those familiar with the situation, he expressed dissatisfaction with his leadership style and his plans (which were later canceled).
Elliott, who initially tried to oust Dorsey, agreed to stay in place on condition that he met his challenging performance goals.
According to a regulatory report released late Monday, the Management Structure Committee “expressed trust in management and recommended maintaining its current structure”.
The company said that a committee, including Elliott partner Jesse Cohn and Silver Lake co-CEO Egon Durban, “evaluated the company’s current governance structure, new operating plans and procedures implemented by the company’s CEO, as well as significant improvements to the company. Product, operational and financial performance for the most recently reported quarter”.
Twitter’s stock has risen nearly 20% since Elliott disclosed its stake in the company on February 28, and has since provided hedge funds with about $200 million in paper profits.
The board has agreed to governance changes designed to better respond to shareholder concerns. According to Director Jin, the directors are elected for an annual term rather than a multi-year term, and the company also “updated the CEO succession plan according to best practices”.
A Twitter spokesperson does not share details of the succession plan.
Public expression of support for Twitter executives came after Dorsey’s brutal year, which sparked the company’s decision to tweak content on the platform.
Chief Executive Officer Condemned bombing In a Senate panel last week, he filed a complaint from Republicans that his company was suppressing conservative voices and that Democrats senators did not adequately control misinformation and hate speech on the platform.
Apart from this, Twitter’s cybersecurity practices were questioned when it was hit by a famous hack in July that affected many celebrity users.
Twitter posted strong financial results in its third-quarter earnings last week, but its user growth fell short of quarterly expectations, warning: Extra delay News of the long-awaited introduction of a new advertising system has driven the stock price down by 17%.
Twitter shares fell 4.6% on Monday, but rose 1.4% in after-hours trading.
Further reporting from Sujeet Indap in New York
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