Twitter’s CEO search is expected to end soon. Once the micro-blogging firm names its new permanent CEO, an “immediate turnover” on the board of directors is expected by Chris Sacca, Lowercase Capital founder and Twitter investor.
Twitter board needs restructuring
“One of the things that we’ve seen from Jack Dorsey over at Square is he is great at building a talented board full of smart, successful and challenging members who can keep the company moving at its best,” Sacca told CNBC’s Squawk Alley. Twitter does not do this now, but in the future, the company will definitely see this, Sacca said.
Notes From Schwarzman, Sternlicht, Robert Smith, Mary Callahan Erdoes, Joseph Tsai And Much More From The 2020 Delivering Alpha Conference
The following are rough notes of Stephen Schwarzman, Steve Mnuchin, and Barry Sternlicht's interview from our coverage of the 2020 CNBC Institutional Investor Delivering Alpha Conference. We are posting much more over the next few hours stay tuned. Q2 2020 hedge fund letters, conferences and more One of the most influential investor conferences every year, Read More
Sacca is very much in favor of transforming the board and believes more women and people of different origins should be included. Sacca seemed very discontented with the company’s board and said it has been a disaster since the beginning. He added that if one looks at the company’s history, the decision of firing both of the company’s founders has been of the outside board members.
Within a few years, Twitter grew from zero to 200 million users, and the credit for this goes to the founders. Many professional managers have come and go, and this is not surprising for him. “I’m upset as I have ever been, but I’m not shocked by this board continuing to screw it up,” Sacca said.
Sacca confident on Dorsey’s appointment
Twitter investors were anxiously awaiting the announcement of the company’s next permanent CEO on Thursday. But when no news came, investors were left disappointed, resulting in a more than 8% drop in the stock price. To investors, Sacca said that no one should buy Twitter’s stock on faith but added that things will improve going ahead.
Sacca is “highly confident” on Dorsey being appointed as permanent CEO. The Twitter investor said it is not a “hypothetical situation,” as Dorsey has been Twitter’s CEO for more than a quarter now, and under his leadership, the pace of the company’s product road map has accelerated dramatically.
Twitter shares have declined more than 30% since Costolo’s departure more than 100 days ago, and currently they are trading below the IPO price. On Thursday, Twitter shares closed down 8.43% at $24.67. Year to date, shares are down by over 31%, while in the last year, they are down by over 52%.