Daily Management Review

Twitter’s Technology Chief Parag Agrawal Steps Into The Shoes Of CEO Jack Dorsey


Twitter’s Technology Chief Parag Agrawal Steps Into The Shoes Of CEO Jack Dorsey
Twitter Inc’s Chief Technology Officer Parag Agrawal will step into the shoes of the co-founder and Chief Executive Officer Jack Dorsey following stepping down form the post on Monday, according to the social networking site.
Even if investors were sceptical, the hiring of Agrawal, a 10-year Twitter veteran, signified a tacit endorsement by the board of a strategy the business had previously laid out to quadruple annual revenue by 2023.
Following the announcement, Twitter's stock rose over 10 per cent before falling 2.7 per cent.
Dorsey, who co-founded Twitter in 2006, is stepping down after supervising the development of new methods to publish content, such as newsletters and audio discussions, while also acting as CEO of Square Inc., his payments processing startup.
He also negotiated the turbulent years of US President Donald Trump's presidency before excluding the Republican from the platform following the Jan. 6 attack on the US Capitol.
The new CEO will take effect immediately, while Dorsey will continue on the board of directors until his tenure ends at the 2022 annual shareholder meeting, according to the business.
Dorsey announced his decision to step down in an email to Twitter employees on Monday, citing the strength of Agrawal's leadership, the appointment of Salesforce Chief Operating Officer Bret Taylor as the new chairman of the board, and his belief in the "ambition and potential" of the company's employees.
"I'm really sad ... yet really happy," he wrote. "There aren't many companies that get to this level," adding that his move to step down "was my decision and I own it."
"We recently updated our strategy to hit ambitious goals, and I believe that strategy to be bold and right," Agrawal said in an email to employees. "But our critical challenge is how we work to execute against it and deliver results."
Over the last year, Twitter has worked to dispel years of criticism that it was reluctant to provide new features for its 211 million daily users and was losing ground to social media competitors such as Instagram and TikTok.
Twitter purchased email newsletter business Revue and debuted Spaces, a feature that allows users to host or listen to live audio discussions, under Dorsey's leadership.
A crucial component of the company's plan to quadruple yearly income by 2023 is to enhance advertising to assist companies locate Twitter users who are likely to be interested in their product.
However, Twitter's stock has been falling in recent months, putting pressure on Dorsey to relinquish his unusual dual role as CEO of two public firms.
Elliott Management Corp called on Dorsey to stand down in early 2020, claiming that he was devoting too little attention to Twitter while simultaneously operating Square Inc.
Dorsey defused the situation by appointing Elliott and his friend, buyout company Silver Lake Partners, to the Twitter board of directors.
Elliott Managing Partner Jesse Cohn and Marc Steinberg, a senior portfolio manager, approved the passing of the baton in a joint statement released following the news.
"We are confident that they (Agrawal and Taylor) are the right leaders for Twitter at this pivotal moment for the company."