Twitter CEO Egon Durban, co-CEO of private equity firm Silver Lake, failed to garner enough votes to be re-elected to the board.
Twitter CEO Egon Durban, co-CEO of private equity firm Silver Lake, failed to garner enough votes to be re-elected to the board during the company’s annual shareholder meeting on Wednesday.
Institutional Shareholder Services, a consulting firm, recommended that Durban not be re-elected because he sits on the boards of “more than five publicly listed companies”.
However, Durban may remain director of Twitter despite its failure to garner the majority of shareholder votes, according to a Twitter agent’s statement. The company requires board candidates to submit an “irrevocable resignation” prior to the vote, which will begin if the nominee fails to win shareholder approval and the board accepts the resignation. But the board of directors has the power to refuse to resign, leaving the nominee as director, according to the power of attorney’s statement.
A Twitter spokesperson said: “Egon Durban has submitted his resignation to the Board of Directors.” “The Board’s Nominating and Corporate Governance Committee will immediately consider whether to recommend that the Board accept Mr. Durban’s resignation and provide an update in a timely manner.”
Former CEO Jack Dorsey did not run for re-election Wednesday, and is no longer a board member, ending his official relationship with the social network he co-founded in 2006. He’s been a director since 2007, most recently CEO of Twitter from mid-2015 until He resigned last year.
Unsurprisingly, Dorsey didn’t support bringing him back to the committee — in November he said he would step down as CEO and leave the board when his term expires. But Dorsey’s exit marks the first time in Twitter’s history that none of its founders has worked for the company or sat on the board of directors.
Twitter shareholders voted on a number of issues Wednesday, but did not consider the biggest change facing the San Francisco-based company: the impending purchase of billionaire Elon Musk. Twitter’s board accepted an offer from Musk in late April to make the company private for about $44 billion. Shareholders will vote to approve the transaction at a later date that has not yet been announced.
Musk, the world’s richest person, has vowed to make drastic changes to Twitter once he takes office, and the current board of directors is not expected to remain in place once he takes the company private. He also refused to run for re-election was Robert Zoellick, the former president of the World Bank, who has served as Twitter’s director since 2018. And Twitter board member Patrick Pechet, former Google CFO, was re-elected. Twitter’s other seven director seats were not renewed this year.
Shareholders rejected the proposal that would have lifted the secrecy of the company’s board of directors and required members to run for re-election each year. Currently, board members receive three-year terms when elected, which is a strategy that makes it difficult for an outside active investor to come in and force changes to the board in a short period of time.
(Corrects the days of the week to Wednesday in the first paragraph.)