Musk was supposed to be appointed to Twitter’s board of directors on Saturday, but the world’s richest man told the company that day that he would not, in fact, take a board seat.
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Twitter CEO Egon Durban will not leave the board, the company said in a regulatory filing on Friday, although he offered to resign after shareholders voted to relieve him of the position.
Twitter said its board believes Durban has failed to secure shareholder support due to his role as a director on several other public company boards. Twitter noted that Durban serves on the board of six other publicly traded companies, but said it had agreed to reduce the number of boards of public companies on which he serves to five by May 25, 2023.
“While the Board does not believe that other public company managements of Mr. Durban will become a hindrance if these engagements continue, Mr. Durban’s commitment to reduce his commitment to serve the Board of Directors to five public company boards by the date of the reform appropriately addresses the concerns raised by shareholders regarding with these links,” the company said in the filing. “Accordingly, the Board has concluded that accepting Mr. Durban’s resignation at this time is not in the best interest of the Company.”
“The Board of Directors considers Mr. Durban a highly effective member and believes he brings to the Board unparalleled operational knowledge of the industry, unique perspective, skill set and invaluable experience with mergers and acquisitions,” the statement added. “The Board noted that Mr. Durban has enhanced his ability to effectively oversee the company’s long-term value creation strategy and manage its implementation. Furthermore, Mr. Durban is always well prepared, engaged and a helpful contributor to Board meetings and discussions.”
The corporate governance advisory firm International Shareholder Services has advised against continuing to serve Durban as a director, citing his other obligations on the board.
Durban, the co-CEO and managing director of private equity firm Silver Lake, was among the board members when he unanimously approved the sale of Twitter to billionaire Elon Musk last month.
Silver Lake previously worked on deals with Musk, including by investing $100 million in his solar company SolarCity, before it was acquired by Musk-run Tesla. Musk said he was working with Silver Lake in 2018 when he claimed he took Tesla private, although that didn’t come to fruition.
Separately this week, Twitter shareholders filed a proposed class-action lawsuit against Musk and Twitter over the acquisition, sending volatility in the stock. The lawsuit alleges that Musk purchased the Twitter posts while he was aware of inside information based on private conversations with board members, including Durban. Twitter and Silver Lake declined to comment on the lawsuit, and Musk did not respond to requests for comment.
WATCH: A timeline of the Elon Musk-Twitter takeover saga