July 4, 2022

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Ex-Twitter CEO Criticizes Board of Directors, Musk "Almost Owns No Stock!"

Ex-Twitter CEO Criticizes Board of Directors, Musk “Almost Owns No Stock!”

Twitter CEO Jack Dorsey addresses students during a meeting at the Indian Institute of Technology (IIT) in New Delhi, India, November 12, 2018.

Anushri Fadnavis | Reuters

former Twitter CEO Jack Dorsey criticized the company’s board of directors in a series of tweets on Sunday as the group is now tasked with evaluating a takeover bid from billionaire Elon Musk.

In response to another Twitter user describing “conspiracies and coups” that occurred early in the history of Twitter’s board of directors, Dorsey replied“It has always been the dysfunction of the company.”

Earlier, he replied to another tweet in the same thread. It quoted venture capitalist Fred Destin, quoting what he called “like Silicon Valley”: “Good boards don’t create good companies, but a bad board will kill a company every time.”

“Big facts,” replied Dorsey.

Dorsey is still a member of Twitter’s board of directors, but plans to leave as soon as his term expires at the 2022 shareholder meeting, scheduled for late May.

The council is currently studying Tesla CEO Musk offered $43 billion to buy the company and make it private. It is also said to attract extra attention. On Friday, Twitter Board of Directors Adopt the so-called toxic pill A limited-term shareholder equity plan that allows shareholders to purchase shares at a discount if any person or entity accumulates at least 15% of the outstanding common stock without obtaining prior approval from the Board of Directors. Musk recently disclosed a more than 9% stake in the company before his takeover bid.

The board said the plan would not prevent it from striking a deal for the benefit of the company and its shareholders, but it would “reduce the possibility that any entity, person or group will gain control of Twitter through open market buildup without paying all shareholders an appropriate oversight premium or without sufficient time The Board of Directors can issue informed judgments and take measures that are in the interest of the shareholders.

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Dorsey, who also co-founded the company, had a previous stint as its CEO but he was Released from the role in 2008 And replaced it with another of its founders. he is is back to lead the company in 2015.

Musk tweeted Saturday that with Dorsey leaving the board, “Twitter management collectively owns virtually no stock! Objectively speaking, their economic interests simply do not align with those of shareholders.”

Dorsey recently noticed that he “ended up with very little of the company” because he acquired many of his shares when he was fired in 2008. He also said he returned 1% of the company to employees in 2015. However, Dorsey remains the company’s largest internal shareholder after Musk’s 9.1% stake, with about 2.25% of the stock, according to FactSet. Next, Silver Lake, whose CEO Egon Durban is on Twitter’s board, owns 0.26%, according to FactSet. Vanguard Group is the largest institutional shareholder, with a 10.29% stake in the company, according to FactSet.

Twitter did not immediately respond to a request for comment.

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