Twitter has named Jack Dorsey as its permanent chief executive after dropping his interim CEO title on Monday (5 October). Dorsey, one of Twitter's co-founders, has held the interim position since June after former chief Dick Costolo announced he would be stepping down. In an interview given to the Guardian before leaving his post, Costolo said he underestimated the pressures that going public would place on the social media company.
On 5 October, Twitter said its board members were placing their full support behind Dorsey, who will also remain CEO of mobile payment company Square despite the board earlier publicly stating it was searching for someone who could take on the role full time.
The new CEO will have his work cut out as Twitter shares have been on a downward trend since late July, after Dorsey said he was "not satisfied" with user growth. In August, shares actually fell below the November 2013 initial public offer (IPO) price of $26, amid persistent concerns over the company's long-term growth prospects.
"By the company's own admission, Twitter remains challenging to use and understand for the mass market consumer," analysts at Barclays told the Financial Times at the time. "The value proposition is still poorly understood, despite high overall awareness of the product."
A Securities and Exchange Commission filing confirms the board formally took the decision on 30 September. The document also reveals "there are no plans to provide Mr Dorsey with direct compensation" for his role as Twitter's chief executive.