Twitter CEO Jack Dorsey has announced he is giving a third of his shares worth $200 million to employees. This amounts to about 1% of the company’s total equity base.
Speaking on this development, Sotirios Paroutis, of Warwick Business School, is Associate Professor of Strategic Management and studies Twitter.
Dr Sotirios Paroutis said: “After the stick, we now have the carrot. After the decision to lay off eight per cent of staff last week, Jack Dorsey now sends a motivational signal inside the firm that he is also taking steps to retain Twitter’s talent pool. It also sends a signal to investors that he is prepared to take bold decisions to make sure Twitter keeps up the pace with its innovations to market.
“He now has a second chance to revive Twitter in a way that convinces its primary stakeholders that there is a viable business plan behind the firm that can help it deliver both credible user innovations and future growth.
“Such innovations like Twitter Moments show that there is still potential to deliver a fresh service that users can engage with. But for these innovations to have impact, both internal talent and external developers need to be on board.
“Twitter needs to re-engage with communities of developers, so they can help it create and deliver quickly a number of innovations its users will value. Previous moves by the firm turned away developers, who then found refuge with other social platforms.”
