In Spain, the term CEO is equivalent to the chief executive officer or the executive director of the company, that is, the person most responsible for the management and administrative direction of a company. And that is what Jack Dorsey was on Twitter and also on Square, a double that has taken its toll and which he ends today to focus on one of the companies.
Jack Dorsey deja Twitter
Jack Dorsey is leaving his position and the chief technology officer, Parag Agrawal, will go on to lead the company, the social network announced on Monday. The appointment of Agrawal, a 10-year veteran of Twitter, It’s an endorsement of a strategy the company had previously outlined to double its annual revenue by 2023 and also indicates an increasing focus on Twitter’s long-term ambition to rebuild the operation of social media businesses.
Dorsey, who co-founded Twitter in 2006, is leaving after overseeing the launch of new ways to create content through newsletters or audio conversations, while serving as CEO of his payment processing company Square Inc, a double that seems to have taken its toll and that several investors and managers did not like, which pointed out to Dorsey for not properly managing Twitter for being Square-centric.
The change of CEO is effective immediately and Dorsey will remain on the board of directors until his term expires at the 2022 annual meeting of shareholders, according to the company.
A forced withdrawal?
In an email sent to employees Monday, Dorsey said he decided to resign due to the strength of Agrawal’s leadership, the appointment of Salesforce COO Bret Taylor as the new chairman of the board, and his confidence in the “ambition and potential “ of Twitter employees.
Due to this succession, the shares of the social network have shot up 9% in the first operations after the news of the change of CEO, before reducing earnings in the afternoon. Square shares were flat in afternoon trading. In the past year, Twitter has struggled to end criticism over the years that it was slow to introduce new features to its 211 million daily users and that it was losing ground to social media rivals such as Instagram and TikTok.
Under the direction of Dorsey, Twitter acquired the Revue email newsletter service and launched Spaces, a feature that allows users to host or listen to live audio conversations. The company has also introduced advertising enhancements to help brands find Twitter users who may be interested in its product, a key component of the company’s goal of doubling annual revenue by 2023.
A planned withdrawal from 2020
However, not everything was going well on the pioneering micro-blogging platform, as the shares of the social network have only plummeted in recent months, This has increased the pressure on Dorsey to end his unusual deal to be CEO of two companies.
In early 2020, Dorsey faced requests from Elliott Management Corp to resign, after the hedge fund argued that he was paying too little attention to Twitter while also running Square Inc. Dorsey defended himself against pressure by giving Elliott. and its ally, purchasing firm Silver Lake Partners, positions on Twitter’s board of directors. The ex-CEO of Twitter will now focus on leading Square and in other activities such as philanthropy, a source familiar with the matter told Reuters.
The funny thing is that the company’s board of directors has been preparing Dorsey’s departure since last year, so it has not been a decision made in a couple of days.