Jack Dorsey will continue to be the chief executive officer of Twitter Inc as the board committee expressed confidence in the current management structure. This comes as a major reprieve to Dorsey as his leadership came under scrutiny earlier this year. He was under scanner from activist hedge fund Elliott Management. Elliott wanted a change in the management for a better performance after it took 4 per cent stake in the company. The main concern raised by Elliott was Dorsey’s split responsibilities as he continues to be the boss of Square, a payment company co-founded by him. A management structure committee was formed to review his leadership as part of a ceasefire agreement.
According to people familiar with the development, Elliott also expressed concern over his plans and leadership. Dorsey spent almost six months in Africa this year in order to explore opportunities in cryptocurrencies. After initially insisting on the ouster of Dorsey, Elliott agreed that he will continue to be the boss of Twitter. But the condition is that he will have to live up to challenging targets. Twitter said in a regulatory filing that members of the board committee have expressed confidence in Dorsey and proposed that the current management structure must remain in place. The decision was made after the committed accessed operational procedures put in place by Dorsey. Silver Lake co-chief executive Egon Durban and Elliott partner Jesse Cohn were part of the committee.
The filing said that some changes in the board structure of Twitter were suggested by the committee. The changes will apparently give more say to investors in the company’s decision. Apart from agreeing to form a two-member committee in March, Twitter and Elliott had committed to USD 2 billion in share buybacks. The committee has now in a way given some time to Dorsey to prove his leadership to the new investors. The immediate challenge faced by Dorsey is handling the US Presidential election. The micro-blogging site was also under scanner from lawmakers for blocking users from sharing a story link related to the son of Joe Biden.