Jack Dorsey has been re-confirmed as Twitter’s chief executive after a board of directors composed of representatives from the Elliott Management hedge fund activist fund Elliott Management examined the leadership structure of the social media group.
Elliott held a 4% stake in the company in February, inciting management changes to improve the company’s performance. The creation of a “structural management committee” to review Mr. Dorsey’s leadership abilities is part of the ceasefire deal with the hedge fund.
One of Elliott’s main concerns was the division of responsibilities of Mr. Dorsey, as he was also the boss of Square, the payments company he co-founded. It also expressed dissatisfaction with his style of leadership and his plan ̵1; which was later canceled – spent at least half a year in Africa exploring opportunities in crypto, according to people familiar with the situation.
After initially seeking to overthrow Mr. Dorsey, Elliott agreed that he remained in the position on condition that challenging performance goals were met.
According to a regulatory filing released late on Monday, the regulatory structure committee “expressed its confidence in the leadership and recommended that the current structure be maintained”.
The company said the committee – which includes Elliott’s partner Jesse Cohn and co-chief executive officer Silver Lake Egon Durban – evaluated “the current management structure, the new operational plan and the procedures for the company’s CEO company, as well as the company’s significant improvement. products, performance and financial performance through the most recent reporting quarter ”.
Shares on Twitter have risen nearly 20% since Elliott disclosed his stake in the company on Feb. 28, giving the hedge fund an estimated $ 200 million in paper returns since then.
The Board of Directors has agreed to changes in governance to better meet the concerns of shareholders. According to the profile, directors will be elected for annual terms, rather than years, and the company has also “updated the CEO succession plan in accordance with best practices”.
A Twitter spokesperson will not share further details on succession plans.
Publicly showing support for Twitter’s management comes after a tough year for Mr Dorsey, who has been criticized for his company’s decisions to censor content on the platform. .
The CEO faced a series of charges from Republicans in a Senate panel last week that his company was suppressing conservative voices, as well as complaints from elders Democratic congressman that it does not have enough police misinformation and hate speech on the platform.
Separately, Twitter’s cybersecurity activities have been put into question when it was hit by a popular hack in July, affecting many popular users.
Although Twitter published strong financial results in its Q3 results last week, user growth was not as expected in the quarter and it warned of further delays to the introduction of the system. New advertising has been long awaited – causing its stock price to drop 17 per focus on that news.
Twitter shares fell 4.6% on Monday, but were 1.4% higher in after-hours trading.
Additional reporting by Sujeet Indap in New York
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