Twitter Inc TWTR co-founder Jack Dorsey and Tesla Inc TSLA CEO Elon Musk have commented on the low share ownership among board members of the microblogging company.
What Happened: The two executives engaged in a discussion on Sunday after a user said Twitter's board "collectively owns 77 shares of the company."
Musk replied that with Dorsey quitting, the board “collectively owns almost no shares! Objectively, their economic interests are simply not aligned with shareholders.”
Wow, with Jack departing, the Twitter board collectively owns almost no shares! Objectively, their economic interests are simply not aligned with shareholders.
— Elon Musk (@elonmusk) April 16, 2022
Dorsey said when he was fired in 2008 and made the chair, the board took away most of his shares. He also linked his tweet from 2015 about his giving away a third of his Twitter stock to the employee equity pool.
When I was fired in 2008 and made chair, the board took most of my shares away from me. I also gave 1% of the company back to the employee pool in 2015. So, ended up with very little of company. https://t.co/ARyAn542k6
— jack (@jack) April 16, 2022
See Also: How To Buy Twitter (TWTR) Shares
Why It Matters: Over the weekend, Musk said Twitter's board members' economic interests were not aligned with shareholders.
He had offered to purchase the social media platform for $41 billion last week, but the Twitter board imposed a "poison pill" to prevent a takeover.
In the heydays of Twitter, Dorsey was replaced with Evan Williams as CEO and took over the chairperson role.
Responding to a user who pointed out that Twitter's board had been "mired in plots and coups" since the beginning, Dorsey said it has been “the dysfunction of the company.”
it’s consistently been the dysfunction of the company
— jack (@jack) April 17, 2022
When asked by another user if he was allowed to comment on the board, Dorsey said, “no.”
no
— jack� (@jack) April 17, 2022
In a separate interaction, Dorsey said he would take away the “likes” on the social media platform if it was left to him.
if it were up to me I’d take away likes too
— jack (@jack) April 17, 2022
Last year, it was reported that Twitter was testing upvote and downvote buttons, similar to those on Reddit.
In 2021, Dorsey quit as Twitter CEO, and he currently leads fintech Block Inc SQ, formerly known as Square.
Price Action: On Thursday, Twitter shares closed 1.5% lower at $45.18 in the regular session and rose 3.3% to $46.66 in extended trading, according to Benzinga Pro data.
Photo courtesy: TED Conference on Flickr
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