Earlier this morning, there were rumors about Twitter’s Jack Dorsey stepping down. And shortly after, Mr. Dorsey confirmed the stories as accurate.
A press release, accompanied by a tweet on his page, were the chosen instruments in relaying the news.
Jack Dorsey Takes a Bow
“I’ve decided to leave Twitter because I believe the company is ready to move on from its founders,” Dorsey said in a statement. “My trust in Parag as Twitter’s C.E.O. 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.”
Dorsey plans to remain on Twitter’s Board for the next six months to help transition before entirely departing the company.
Mr. Dorsey told Twitter staff that despite it being a tough decision, it was his decision. He also made it clear that he was sad yet pleased. Because while he was relinquishing his service position over a company he loved and founded, it was for the right reasons.
In response to the news of his appointment, Parag Agrawal first thanked the appointing BoardBoard for exuding confidence in his leadership. And he paid tribute to the outgoing C.E.O. for his mentorship, support, and partnership while saying,
“I look forward to building on everything we have accomplished under Jack’s leadership and I am incredibly energized by the opportunities ahead. By continuing to improve our execution, we will deliver tremendous value for our customers and shareholders as we reshape the future of public conversation.”
The Dorsey Legacy
Over the last six years, Dorsey has been instrumental in the running of Twitter, the social network and Square. Square is a financial firm serving consumers with cash, payment, and transfer services.
In regards to Twitter, Mr. Dorsey has had two stints as the C.E.O. His first stint ended in 2008 after being pushed out, but he was still a member of the Board. Then, in 2005, he returned as C.E.O. following the departure of Dick Costolo, up to now.
Following his resignation, Mr. Dorsey will remain on Twitter’s Board until his term expires in 2022, at the meeting of stockholders.
Additionally, president and C.O.O. of Salesforce Bret Taylor is now the Board’s new Chairman following Dorsey’s departure. He will succeed Patrick Pichette, who will remain on the Board and continue to serve as chair of the Audit Committee, the company said.
Dorsey points out that Taylor’s addition to the Board is one of the reasons he felt comfortable stepping down. Taylor “understands entrepreneurship, taking risks, companies at massive scale, technology, product, and he’s an engineer.”
Jack Dorsey’s Storms
Last year, Elliott Management, an activist investment firm, called for Dorsey’s resignation from Twitter. Through its founder, the view was that Dorsey’s dual C.E.O. role meant he couldn’t focus enough on the social media platform.
Twitter then missed Wall Street expectations on revenue and earnings per share last quarter.
In September, the company agreed to pay $809.5 million to settle a class-action suit, in which investors accused the company of providing misleading numbers about engagement.