Twitter announced that Dick Costolo would step down as Twitter CEO on July 1. He will remain on Twitter's board of directors, and will be replaced by Jack Dorsey as interim CEO. Dorsey will continue to lead Square, a mobile payments company he founded in 2008.
Dorsey has agreed to forgo a salary as interim CEO until a replacement is found, according to a letter filed to the Securities and Exchange Commission (SEC) June 11. Previously, Costolo had said on an investor call he initiated the CEO succession talks in late 2014.
Dorsey stepped down as CEO of Twitter in 2008 after switching places with fellow co-founder Evan Williams, who was chairman of the board at the time. Williams was replaced by Costolo in 2010 and Dorsey returned to lead product. Williams launched Medium, a blog publishing platform, with Twitter co-founder Biz Stone in 2012.
On June 3, Chris Sacca, one of Twitter largest and longest standing shareholders, wrote a lengthy blog post where he said Twitter had "failed to tell its story" and offered a number of suggestions for how the company could reach its full potential. Twitter's stock has been down roughly 20% since its IPO.
Twitter began trading on the NYSE on Nov. 7, 2013, at an opening price of $26; the price ended at $44.90 at the end of its first day of trading. The company raised some $1.82 billion in the IPO, giving it a valuation of around $18 billion.
Twitter co-founder Evan Williams (pictured), who does not have a day-to-day role at the company, was as of Oct. 2013 the single largest individual shareholder with 12% of the company's shares. Co-founder Jack Dorsey (who later founded Square) had 4.9% and Costolo had 1.6%.