Musk would have been appointed to the Twitter board on Saturday, but the richest man in the world told the company that day that he would not actually take a seat on the board.
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Twitter CEO Egan Durban will not step down, even though he offered to resign after shareholders voted to remove him from the post, the company said in a statement on Friday.
Twitter said its board believes Durban has not received shareholder support because of his role as director on a number of other boards of state-owned companies. Twitter noted that Durban is on the boards of six other public companies, but said he agreed to reduce the number of boards of state-owned companies in which he works to five by May 25, 2023.
“While the Board does not consider that other positions of Mr. Durban’s Public Company Director will be an obstacle if such commitments continue, Mr. Durban’s commitment to reduce his responsibilities to serve the Board of Directors of the five State Company Boards before the rectification date properly addresses these concerns. shareholders in respect of such commitments, ”the company said in a statement. “Accordingly, the Council decided that the adoption of Mr. Durban’s resignation at this time was not in the interests of the company.”
“The Board considers Mr. Durban a very effective member and believes that he brings to the Board of Directors unprecedented operational knowledge in the industry, a unique perspective, and an invaluable set of skills and experience in mergers and acquisitions,” the statement added. “The board noted that Mr. Durban has strengthened his ability to control the company’s long-term value creation strategy and effectively manage its implementation. In addition, Mr. Durban is consistently well-prepared, committed and makes a significant contribution to board meetings and discussions. ”
The corporate governance consulting firm International Shareholder Services did not recommend Durban to continue as a director, citing other of his responsibilities on the board.
Durban, co-CEO and managing director of private investment firm Silver Lake, was on the board when he unanimously approved the sale of Twitter to billionaire Ilan Musk last month.
Silver Lake previously worked on deals with Mask, including investing $ 100 million in its solar business SolarCity before it was acquired by Tesla, which operates Mask. Musk said he worked with Silver Lake in 2018 when he claimed to be taking Tesla privately, but that never worked.
Separately this week, Twitter shareholders filed a proposed class action lawsuit against Mask and Twitter in connection with the acquisition, which led to volatile stock fluctuations. The lawsuit alleges that Musk bought shares of Twitter, knowing insider 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.
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Twitter director Egan Durban will not leave the board after the shareholders vote
Source link Twitter director Egan Durban will not leave the board after the shareholders vote