Jack Dorsey remains CEO of Twitter after board members voted to keep the current CEO structure, but the company is looking at a CEO succession plan, it said.
In a filing Monday with the Securities and Exchange Commission, the company announced that the board had “expressed its confidence in management and recommended that the current structure remain in place.”
Members of activist hedge fund Elliot Management, which owns a 4% stock in Twitter, had questioned Dorsey’s effectiveness, since he is also the CEO of finance tech company Square.
Activist investor Paul Singer had also challenged Dorsey’s stated plan to move to Africa for 3-6 months because the continent was “the future.” The Africa plan was later scrapped.
The board developed a management structure committee to review Dorsey and his team going forward. The leadership team must follow new performance targets, the report said.
The board also said Monday it would vote to adopt “governance changes” to make Twitter more receptive to shareholders, including moving board elections to one-year terms. The company also said it had “updated the CEO succession plan in line with best practices.”
Dorsey faced angry questioning from Republican Senators earlier this month in a special hearing with CEOs of Facebook and Google to examine liability on social media under Section 230 of the Communications Decency Act.
Republicans complained about tech companies blocking conservative content. President Donald Trump has called out Twitter for flagging his tweets as inaccurate or misleading.
In July, the Twitter accounts of 130 high-profile people, including Democratic presidential nominee Joe Biden and Tesla CEO Elon Musk, were hacked and 45 were breached.
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