Dorsey gets Twitter CEO post, Bain appointed COO

Twitter has made co-founder Jack Dorsey its new CEO, ending months of speculation and handing him the tough task of turning around the company's sluggish user growth.

Jack Dorsey
Jack Dorsey

Twitter has made co-founder Jack Dorsey its new CEO, ending months of speculation and handing him the tough task of turning around the company's sluggish user growth.

Dorsey is also CEO of mobile payments company Square, creating the unusual situation of having one person lead two high-profile Silicon Valley companies at the same time. He's also on the board of The Walt Disney Company.

Dorsey has been Twitter's interim CEO since Dick Costolo stepped down abruptly four months ago, so the big change, approved by the board on September 30 according to an SEC filing, is to make Dorsey's role permanent. That filling also said that "there are currently no plans to provide Mr. Dorsey with direct compensation for his role as Chief Executive Officer."

The board also appointed Adam Bain, who has been president, Global Revenue & Partnerships since September 2010, as COO. Also on September 30, Costolo resigned his position on Twitter's board. While Dorsey had been Twitter's chairman, the SEC filing made public on Monday said that he will no longer serve in that role although he will remain on the board. It did not say who will take on that position.

Dorsey's main tasks at Twitter are to figure out how to attract users at a faster pace, and to create a path to profitability.

The social network is under intense pressure to figure out how to draw new users to its service. Unlike Facebook, which ramped easily to a billion subscribers, Twitter grew quickly at the start but seems to have hit a plateau.

It reported strong growth in its advertising business last quarter, but the social network isn't profitable, in part because it's investing in the infrastructure that delivers its service.

More worryingly, the number of core users who access Twitter at least once a month increased by only 2 million last quarter, to 304 million.

"This is unacceptable and we’re not happy about it," Dorsey said at the time.

In July, he outlined steps to draw more users, including making it easier for people to get started on Twitter, and showing more meaningful tweets in timelines.

"People all over the world know of the power of Twitter, but it's not clear why they should harness it themselves," he said then. Twitter needs to communicate better why people should want to use it.

He even talked about rethinking Twitter's signature chronological tweet stream, but a challenge for the company is that any big changes could alienate its core base.

Dorsey created Twitter in 2005 and 2006 with Evan Williams, Biz Stone and Noah Glass. Dorsey became CEO soon after but lost the role in 2008, because he became a "distracted manager," according to a profile in The New Yorker.

The following year he co-founded Square, known for its technology that lets small merchants take credit card payments on smartphones and tablets. He's chairman and CEO of that company, in addition to now being CEO of Twitter.

Twitter's investors don't seem thrilled at having a CEO who divides his time between two companies. The company's stock slipped more than 8 percent last week after reports emerged that Dorsey was likely to get the top job.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

AI Leasing Assistants have finally arrived for the multifamily industry. With so many to choose from it can be hard to figure out which i...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Blog Posts

Why if marketing is all you do, you’ll never be very good at it

OK, so you’re probably thinking: “Here comes another article to badger me about living in my bubble.” And also, “I bet this bubble-bashing piece will go on to explain how I can achieve better results through some heady dose of new life experiences, new routines and annoyingly different opinions on social media.”

Dane Smith and Toby Harrison

Ogilvy Australia

A leader’s role in rebuilding a culture of confidence

Every day, there are new predictions and studies on the future of work, the state of the economy and the unfolding global pandemic. All of which creates uncertainty and heightens the imperative of effective leadership.

Michelle Gibbings

Workplace expert, author

Confused About Your Customers?​

​I've worked in brand and marketing for more than 20 years. But there’s one area where I’ve found myself going around in circles and I must admit I'm becoming increasingly confused.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in