Twitter co-founder and CEO Jack Dorsey resigned on Monday. Dorsey, 45, was both the CEO of Twitter and head of square, a payment service provider that he also founded and which recently disappointed investors’ expectations. On news of the impending resignation, Twitter share had risen nearly eleven percent in the pre-trade session, but is now almost back to its old level. Meanwhile, trading was suspended due to “report pending by the company”.
Jack Dorsey is handing over the key position with immediate effect Former Chief Technology Officer Parag Agarwal, Outgoing and future Twitter owners announced the change in style on Twitter proper.
Jack Dorsey values the fact that he is leaving the position of boss without pressure and of his own free will. He will continue to serve on the board until about May and then leave the company altogether.
Voluntarily or not, Dorsey had long conflicts with major shareholders, who felt it made no sense for Dorsey to run both Twitter and Square. especially the founder of Elliot Management and billionaire investors Paul Singer In his role as Twitter boss, he was considered a staunch opponent of Dorsey. As recently as Dorsey announced that he intended to keep his offices in Africa for six months a year, Singer has begun to attack.
For example, he had bought enough Twitter shares through his investment fund to fill three vacancies of directors on Twitter’s supervisory board. Singer’s intention to fill key positions at the company with candidates was interpreted in such a way that the ultimate goal of removing Jack Dorsey from the office of CEO was being pursued. Recently, however, Singer tendered his resignation after he managed to get Twitter management to agree to a difficult target.
Target agreements specifying a certain growth expectation are already in place. In his first announcement as CEO, new Twitter boss Agarwal hastened to lay out agreed growth goals. You are brave and mighty, but in any case right, so dorsey successor.
Singer wasn’t alone in his reservations about Dorsey. Investor Scott Galloway already had in December 2019 an open letter To Twitter manager Omid Kordestani, whom he opened with the words: “A part-time CEO moving to Africa? That’s enough.” During the open letter, Galloway became even more candid.
He accused Dorsey of a lack of self-criticism, apathy, and a penchant for meaningless gossip (Yogababble). Dorsey’s apathy towards Twitter is understandable, as he takes nearly 85 percent of the lion’s share of his assets from payments provider Square.
Given all these aspects, the resignation appears to be the logical result of a multi-year development. For Dorsey himself, the experience of being ousted – though he says he leaves of his own accord – is not new. This happened to him once in 2008. He returned to Twitter as boss in 2015 after former CEO Dick Costolo stepped down.
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