Jack Dorsey Steps Down from Twitter CEO Role
CNBC reported on 29th November that Twitter CEO Jack Dorsey is expected to step down from his role at the social media company. Dorsey himself confirmed the rumors shortly after and Twitter issued a press release with more details. Parag Agrawal, who joined Twitter as an engineer in 2011 and has served as CTO since 2017, will take over as Dorsey’s successor.
Dorsey is the CEO of both Twitter and Square, a financial company that serves both consumer and corporate customers with payment, cash management and transference services. Twitter says Dorsey will remain on Twitter’s Board until his term expires at the 2022 meeting of stockholders.
Dorsey wrote in an email to Twitter’s staff, which he also tweeted, “There’s a lot of talk about the importance of a company being ‘founder-led.’ Ultimately I believe that’s severely limiting and a single point of failure. I’ve worked hard to ensure this company can break away from its founding and founders.”
Alongside Dorsey’s departure, Bret Taylor, the president and COO of Salesforce, was named the new Chairman of the Board, succeeding Patrick Pichette who will remain on the Board and continue to serve as chair of the Audit Committee, the company said.
Dorsey points to Taylor’s addition to the board as one of the reasons he felt comfortable stepping down, noting Taylor “understands entrepreneurship, taking risks, companies at massive scale, technology, product, and he’s an engineer.”
Dorsey wrote to his team, “I want you all to know that this was my decision and I own it. There aren’t many founders that choose their company over their own ego. I know we’ll prove this was the right move. My trust in Parag as Twitter’s CEO is deep. His work over the past 10 years has been transformational. I’m deeply grateful for his skill, heart, and soul. It’s his time to lead.”
Twitter said there are no changes to the company’s previously shared outlook for the fourth quarter and full-year 2021, or its 2023 goals, as a result of these leadership changes. Twitter’s stock rose on the news that Dorsey may step down, trading up 6.1% as of the time of writing after giving up some early gains in the first minutes of the week’s trading cycle. Twitter shares at the end of day were, off some 0.13%.
For comparison purposes, Twitter is worth around $40 billion today. No small number, to be clear, but less than half the value of Square, which has a public-market worth of just over $99 billion. Square shares are also trading higher this morning, albeit to a smaller degree. Twitter has previously attracted investor dissent for its CEO’s split time.