Twitter Inc (NYSE:TWTR) directors and topline executives are retaining their shares and are devoted to the company, according to chief executive officer Dick Costolo, who said this during the first shareholder’s meeting yesterday. The shareholder meeting was 37 minutes long, where the micro blogging company answered questions about restrictions on speech, philanthropy and recent share performance.
No selling by board members
Twitter Inc (NYSE:TWTR) stock price has slid 50% so far this year due to the sell off triggered in technology stocks. There has been a drop of 18% since the expiry of lockup-period on May 5th.
Investor Gen Shibayama said to the executives at the meeting, “I’m really worried because that, to me, seems to be a message that employees don’t believe in the future of Twitter and people are the most important resource you have.” Shibayama enquired on company’s plan to hold on to the people.
According to Costolo, all board members, including co-founders Even Williams and Jack Dorsey will hold their shares even though there is a sell phase running. These executives are not bound to hold shares as the restriction has been lifted six months after the IPO.
“I love the fact that at the board level you haven’t seen a single share sold, as of or since the IPO,” CEO said and added that the company is extremely clear regarding its plan and vision for what it believes to become.
Twitter wants investors trust
Twitter Inc (NYSE:TWTR) wants its investors to believe that it can fulfill all the promises made regarding the fast pace of growth after the IPO on November 6th. Revenue for the company has increased on the back of new advertising products and an increasing user base. All eight directors were elected to serve until 2017 at yesterday’s meeting.
Twitter Inc (NYSE:TWTR) announced that membership increased 25% in the first quarter, a drop from 30% growth in the previous period. Major shareholder T. Rowe Price Group Inc, unloaded a quarter of its Twitter stake in the first quarter, ending March with 13.56 million shares, according to a May 15 regulatory filing.
Facebook’s first annual meeting was more argumentative compared to Twitter Inc (NYSE:TWTR)’s first meeting in June 2013. During Facebook’s meeting, investors argued with CEO Mark Zuckerberg as they had lost money investing in the IPO.