Twitter Board Said to Consider Shuffle Including Costolo Exit

Twitter Inc.’s board is a considering a shakeup that may involve the departure of former Chief Executive Officer Dick Costolo, people with knowledge of the matter said.

Richard "Dick" Costolo, chief executive officer of Twitter Inc., in San Francisco.
Richard "Dick" Costolo, chief executive officer of Twitter Inc., in San Francisco.
Photographer: David Paul Morris/Bloomberg

The changes, which could be announced when the company names a permanent CEO, are aimed at making the group of directors more diverse, said the people, who asked not to be identified because the deliberations aren’t public.

Jack Dorsey, interim chief executive officer and co-founder of Twitter Inc., arrives for a morning session during the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, U.S., on Thursday, July 9, 2015. Billionaires, chief executive officers, and leaders from the technology, media, and finance industries gather this week at the Idaho mountain resort conference hosted by investment banking firm Allen & Co. Photographer: David Paul Morris/Bloomberg *** Local Caption *** Jack Dorsey

Jack Dorsey, interim CEO and co-founder of Twitter Inc.

David Paul Morris/Bloomberg

The board may expand or be shuffled to include directors from different backgrounds, such as minorities and those with experience in adjacent industries, including advertising and e-commerce, the people said. Any changes may also address the fact that the current board includes three former CEOs -- Jack Dorsey, Ev Williams and Costolo -- an issue that would make it difficult for any new CEO to run the company.

Jim Prosser, a spokesman for San Francisco-based Twitter, declined to comment.

A final decision on the makeup of the board is unlikely to be made until after the company has determined who its new CEO will be, the people said.

Spencer Stuart, an executive recruiting firm, is conducting the search for the next CEO, which could take several months.

Interim CEO Dorsey hasn’t ruled out the possibility of staying on full-time, even though he also has a concurrent CEO role at Square Inc., located a block away in San Francisco.

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