Twitter chief Egon Durban, co-CEO of private equity firm Silver Lake, failed to get enough votes to be re-elected to the board.
Twitter Inc. director Egon Durban, co-chief executive of private equity firm Silver Lake, failed to win enough votes to be re-elected to the board at the company’s annual shareholders meeting. company on Wednesday.
Institutional Shareholders Services Inc., an advisory firm, had recommended Durban not be re-elected because he sits on the boards of “more than five publicly traded companies”.
Durban, however, can still remain a director of Twitter despite not having received a majority of shareholder votes, according to Twitter’s proxy statement. The company requires board nominees to offer an “irrevocable resignation” before the vote, which would become effective if a nominee does not win shareholder approval and the board accepts the resignation. But the board has the power to reject the resignation, leaving the nominee as a director, according to the proxy circular.
“Egon Durban has tendered his resignation to the board,” a Twitter spokesperson said. “The Board’s Nominating and Corporate Governance Committee will promptly consider whether to recommend that the Board accept Mr. Durban’s resignation and provide an update in due course.”
Former CEO Jack Dorsey did not stand for re-election on Wednesday and is no longer a board member, ending his formal relationship with the social network he co-founded in 2006. He has been a director since 2007 and most recently served as CEO of Twitter from mid-2015 until his resignation last year.
It was no surprise Dorsey wasn’t reinstated on the panel – in November he said he would step down as CEO and leave the board when his term expired . But Dorsey’s exit marks the first time in Twitter’s history that none of its co-founders have worked at the company or served on the board.
Twitter shareholders voted on a number of issues on Wednesday, but did not weigh in on the biggest change facing the San Francisco-based company: an impending takeover by billionaire Elon Musk. Twitter’s board in late April accepted an offer from Musk to take the company private for about $44 billion. The shareholder vote on the approval of the transaction will take place at a later date which has not yet been announced.
Musk, the world’s richest person, has promised dramatic changes at Twitter once he takes office, and the current board is unlikely to stay in place once he takes the company private. Robert Zoellick, former president of the World Bank, administrator of Twitter since 2018, also refused to represent himself. Patrick Pichette, member of the board of directors of Twitter and former chief financial officer of Google, was re-elected. The other seven Twitter director seats were not up for renewal this year.
A proposal that would have declassified the company’s board and required members to stand for re-election each year was rejected by shareholders. Currently, board members receive three-year terms when elected, a strategy that makes it difficult for an outside activist investor to come in and force changes to the board in a short period of time. time.
(Corrects the day of the week to Wednesday in the first paragraph.)