Twitter Board Endorses CEO Jack Dorsey Following Activist Investor’s Expulsion Offer
Twitter’s board said Monday that Jack Dorsey will remain the boss after a management review prompted by an activist investor’s effort to remove him from work.
Twitter in March made a deal with key investors to end an effort to push out Dorsey, creating a new committee on the board of directors to control the leadership of the company.
The plan called for a new investment in Twitter by the private equity group. Silver lake, and a commitment from the social media group to launch a $ 2 billion share buyback plan (approximately Rs. 14.8 billion rupees).
The deal also allowed hedge fund Elliot Management, which had been pushing to remove Dorsey, to get its partner Jesse Cohn a seat on the San Francisco-based firm’s board of directors.
As part of the agreement, Twitter created a temporary board committee to “build on our regular assessment of Twitter’s leadership structure.”
Twitter had faced pressure from Elliott Management, which owns about four percent of the company, to replace Dorsey, amid concerns that he has been overextended by managing Twitter in conjunction with digital payments firm Square.
“The committee expressed its confidence in the management and recommended that the current structure remain in place,” the board said Monday in a document filed with the US Securities and Exchange Commission.
The board approved the committee’s recommendations.