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Twitter CEO Jack Dorsey Survives Elliott Ax As Company Offers Concessions

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Twitter CEO Jack Dorsey Survives Elliott Ax As Company Offers Concessions

Twitter Inc (NYSE: TWTR) CEO Jack Dorsey is set to continue at the helm of the company after a board committee appointed earlier this year to look into leadership and succession recommended that the current management stays in place.

What Happened: The committee, formed with the cooperation of activist investor Elliott Investment Management, also recommended certain changes that would give investors a larger voice in the social media firm’s corporate governance, Twitter said in filing with the U.S. Securities and Exchange Commission. 

Patrick Pichette, Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) subsidiary Google’s former chief financial officer, chaired the committee, which also had independent directors — Jesse Cohn, Egon Durban, Martha Lane Fox, David Rosenblatt, and Bret Taylor — as members.

The committee recommended that Twitter add a proposal to the 2021 annual stockholder’s meeting to amend the company’s bylaws and certificate of incorporation so as to eliminate classified board structure.

Why It Matters: In March, Elliott and Twitter came to an agreement under which the latter would buy back $2 billion or 7.9% of its stock.

Elliott’s Cohn and Silver Lake’s Durban were appointed to the social media company’s board under the deal.

Dorsey who also leads Square Inc (NYSE: SQ), found support from Tesla Inc (NASDAQ: TSLA) CEO Elon Musk who said on Twitter, “Just want [to] say that I support [Dorsey] as Twitter CEO. He has a good [heart].”

In late October, Twitter reported third-quarter earnings of 4 cents per share, which missed analyst consensus of 6 cents by 33.33%.

Third-quarter daily active users amounted to 187 million, an increase of one million from the previous quarter and 145 million in the same period last year.

Price Action: Twitter shares closed nearly 4.6% lower at $39.47 on Monday and rose 1.11% in the after-hours session.
Photo by JD Lasica on Flickr

 

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Posted-In: Elliott Investment Management Jack Dorsey Patrick Pichette social media U.S. Securities and Exchange CommissionNews Management Tech Best of Benzinga