The company announced Monday that Jack Dorsey, Twitter CEO, will step down as the head of the social media platform he founded a decade ago.
Parag Agrawal (a former chief technology officer and board member) was elected CEO immediately. Dorsey will continue to be a member until the end of his term at the next stockholders meeting.
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Twitter released a statement by Dorsey stating that “I have decided to leave Twitter” because the company is ready for change from its founders. “My trust is deep in Parag as Twitter CEO. His contributions over the last 10 years have been transformative. His talent, heart, and soul are deeply appreciated by me. He is free to lead.
Dorsey warned about the dangers of a founder leaving a company for too long.
Dorsey stated that there is a lot of talk about how important it is for a company to be ‘founder-led’. “Ultimately, I think that’s extremely restrictive and a single point for failure.”
He said, “And there aren’t many founders who choose their company above their own ego. “I know this will be the right decision.
CNBC was the first to report Dorsey’s departure Monday.
Dorsey is still the CEO of square, his company for digital payments. He is the only CEO of public companies that have market values greater than $5B.
Dorsey did not mention Square or the investor pressure that prompted him to choose one of the executive positions.
Dorsey stated, “I want all of you to know that this decision was mine and I own it.” It was a difficult decision for me. I love this company and service.
Dorsey’s five-year tenure at Twitter is over. During that time, he was instrumental in increasing its user numbers and overseeing the implementation of many new features to increase its reach and combat issues such as abuse or misinformation .
Last year, the investment firm Elliott Management launched a campaign in which Dorsey was removed as CEO.
Elliott Management voted in confidence Monday. Agrawal was elected CEO, and Bret Taylor, president and COO at Salesforce, was elected chairman.
Patrick Pichette (an ex-Google executive) will be succeeded by Taylor. He will continue to serve as chairman of the audit panel.
“Twitter, the global leader in real-time communication and engagement, is our collaboration with Jack over the past two years,” Elliott Management Managing Partner Jesse Cohn stated and Marc Steinberg, Senior Portfolio Manager Marc Steinberg shared their thoughts in a joint statement.
They stated that Twitter is now working towards an ambitious multi-year plan for dramatically increasing the company’s reach, value and reach. “Having met both Parag Agrawal and Bret Taylor, the incoming Chairman, we feel confident they will be the right leaders for Twitter in this crucial moment.”
Twitter declared in a February filing to the Securities and Exchange Commission that it intended to have 315,000,000 monetizable daily active users by 2023 and at least double its annual revenues in that year.
Twitter had $3.7 billion in annual revenue and 192 million daily active users, according to last quarter’s earnings report.
Agrawal, a 10-year-old employee who holds one of the most prestigious positions on Twitter, would announce his appointment Monday to many.
He said he would keep his word on the company’s ambitious plans.
He said that “We just updated our strategy to achieve ambitious goals” and that he believes the strategy is bold and right. Our critical challenge is how to implement it and deliver results. That’s how Twitter will be the best it can possibly be for customers, shareholders, as well as for you. “
Initial Twitter shares rose sharply following Dorsey’s departure, but then they dropped throughout the afternoon.