An independent committee set up by Twitter's board earlier this year has expressed its confidence in the company's management and recommended the current management structure remain in place. The committee examined Twitter's corporate governance following pressure from activist shareholder Elliott Management to reform certain practices.
In particular, Twitter CEO Jack Dorsey faced criticism for dividing his time between Twitter and Square, the other company he founded and where he also serves as CEO. The committee said it discussed succession planning with Dorsey and the relevant board bodies, but no further recommendations on the CEO's role were announced.
The other major recommendation was to change terms of office for Twitter directors. Rather than a staggered election of a handful directors each year, the entire board will be up for election annually. The change will be proposed at the AGM in 2021.
Twitter agreed other changes already earlier this year, when representatives of Elliott and the investor Silver Lake joined its board and later with the appointment of independent chair Patrick Pichette. Pichette chaired the management review committee, which also included the Elliott and Silver Lake representatives along with three other independent directors.
The company said the USD 2 billion share buyback agreed at the time will start now. This follows an around 20 percent drop in its share price after its Q3 earnings report, which showed a significant slowdown in user growth.
