Shortly after Twitter Inc.’s board of directors commenced its search for a new chief executive officer in March, the company said it would only allow someone willing to commit to the job full time. It was a clear message to Twitter’s interim chief executive, Jack Dorsey, that he would have to leave his job role as CEO for payment company Square if he wanted to lead social media firm permanently.
Today, Twitter’s board of directors reversed itself, announcing that it has decided to allow Mr. Jack Dorsey to lead both firms after all. The decision to retain Mr. Dorsey came despite lingering reservations by few directors who pointed out that Twitter required a full-time chief executive. This announcement gives Mr. Jack Dorsey a relief after his leadership at Twitter drew scrutiny in this year from Elliott Management Corporation, which is one of toughest activist investors in U.S financial market.
This news, and the social media giant’s avowal to commence the stock-repurchase plan it announced just before the COVID-19 pandemic, sent the Twitter stock price up 2 percent in after-hours trading. The company’s filing comes eight months after Twitter inked an agreement with Elliott Management to repurchase USD 2 billion of its shares, partly funded through a USD 1 billion investment from PE firm Silver Lake. The company’s shares are up 23 percent this year. The broader S&P 500 index has also enhanced 2.5 percent this year.
Reportedly, Dorsey first served as the CEO of Twitter until 2008, when he was substituted by Ev Williams who is one of the co-founders of the company. Williams had accused Dorsey of being a poor administrator and not concentrating enough on Twitter’s profitability.
Later, Dorsey returned to the company as interim CEO after Dick Costolo resigned. Dorsey’s knowledge of Twitter and the quick launch of novel products encouraged Twitter’s board to hand him the reins permanently.
Source credit - https://www.marketwatch.com/story/jack-dorsey-to-remain-twitter-ceo-company-to-finally-start-stock-repurchase-plan-2020-11-02