Twitter’ ongoing CEO search has stretched past 100 days. But investors and analysts are still clueless on where the CEO search is actually heading.
Investors, employees losing confidence
In a research note on Monday, SunTrust analyst Robert Peck said, “Over 100 days is too long. We are stunned that we have now passed over 100 days since the announcement of the former CEO’s resignation. … Feedback we hear from investors is that the process has taken too long.”
Twitter investors are becoming agitated, and are blaming the firm’s board and the search committee, informed Peck. It can be understood that the CEO’s position is a very important one, for which there is need of a diligent and thorough search process, but investors are now questioning if the lengthy search process has become detrimental, the analyst said. The prolonged CEO search has left investors and the analysts rattled with Twitter facing the risk of brain drain and losing advertiser confidence.
When Twitter went public in November 2013, the micro-blogging firm made a promise to grow its user base, but it has not been able to fulfill the promise yet, and that’s one major reason investors are worried about Twitter’s future.
Dorsey seems like the right choice for Twitter
A highly respected candidate has been entrusted with the responsibility of running the company currently, and according to Peck, this is another reason for analysts’ and investors’ frustration. Why Twitter has not named founder and interim CEO Jack Dorsey as successor to Dick Costolo, who stepped down in July, is something Peck is unable to understand.
However, the problem with appointing Dorsey as CEO is that he is also the founder and CEO of digital payments company Square, which recently filed for an IPO, which is expected before the end of the year. While starting with the search, Twitter’s board of directors made it clear that the new CEO cannot run two companies at a time.
Peck gives four major reasons for supporting Dorsey, and the most important of those is that Dorsey commands respect both inside and outside Twitter. Second, under Dorsey, Twitter’s pace of innovation has increased and the company is rolling out new products more swiftly. Third, Dorsey has earned the loyalty of some senior executives, who would work only for him. Finally, many shareholders are expecting and supporting Dorsey’s appointment as the CEO.