Jack Dorsey Named CEO of Twitter

As co-founder of social media giant drops interim CEO title on Monday, stock shares go up 1.3 percent in premarket trading

Last Updated: October 5, 2015 @ 6:04 AM

Twitter named its co-founder Jack Dorsey CEO on Monday, dropping his interim title.

The 38-year-old was operating as the temporary CEO of the company since July when Dick Costolo stepped down. Shares of the company are up 1.3 percent in premarket trading on Monday.

“On September 30, 2015, the board of directors of Twitter Inc. appointed Jack Dorsey, co-founder and interim chief executive officer, as chief executive officer,” Twitter said in a regulatory filing on Monday.

“Mr. Dorsey will continue to serve as a member of the board, but will no longer act as chairman. Mr. Dorsey will also continue to serve as chief executive officer of Square Inc., the payments and financial services company he co-founded in 2009.”

The company will not provide Dorsey with direct compensation for his CEO role, it said. “There are no arrangements or understandings between Mr. Dorsey and any other persons pursuant to which he was selected as chief executive officer.”

Costolo, who stepped down from the company’s board, offered praise for his successor: “ is a calm and thoughtful leader. He is bold, forthright, decisive, and the team loves working with him,” he tweeted.

Dorsey will stay on as the CEO of Square, the mobile payment company he founded in 2009.

As TheWrap previously reported, Dorsey has his work cut out for him to help spark the somewhat stagnant social media company, who in August fell to its lowest stock price since its initial IPO.

“Overall, Twitter is in a very precarious position right now,” digital expert and co-founder of Brave Ventures Jesse Redniss told TheWrap.”Dorsey has prided himself as a ‘Product Vision guy’ and that’s a big component of exactly what Twitter needs right now.”

Another social expert, Jenni Hogan, told TheWrap the social media giant needs to “find itself” again: “Twitter needs to ‘find itself’ again, build self-confidence and project a strong sense of identity and vision so it is no longer compared to Facebook.”

Dorsey will be tasked with improving stagnant user growth, which was up just 8 percent in the second quarter compared to the previous quarter. He’ll also look to improve the company’s profits.