Twitter Inc shares have been maimed since CEO Dick Costolo left the firm on July 1, and those in charge at the firm don’t seem ready to put a new exec in the big chair just yet. Robert Peck of SunTrust is one of the Wall Street analysts that has followed the CEO search most closely, and now he thinks it’s causing trouble at the firm.
In a report published on Monday morning Mr. Peck said that his info pointed to more high profile people leaving the firm as the CEO search wears on. He said that two board members, Peter Currie and Marjorie Scardinio, are likley to leave the firm soon. Mr. Peck said the two were “likely to leave the firm.”
He also questioned whether shareholder understood the CEO search as a good or a bad thing in the medium term.
Twitter can’t find a CEO
It’s not clear why Twitter hasn’t been able to find a CEO just yet. Some reports have said that the board at the firm put together a process that is taking a lot of time, while others have suggested that Twitter is having a heard time finding an outside candidate that will take the job. Internal candidates, like Adam Bain and Jack Dorsey, don’t seem willing to take the job.
Mr. Peck, who previously forecast that Twitter would have a CEO before labor day, thinks that there are major changes coming to the firm as part of the CEO search. With the loss of Peter Currie and Marjorie Scardino, if Mr. Peck is right this time around, the firm will get even weaker at the top and require major changes in order to replace all of the execs that it’s losing.
Scardino is the former chief of Pearson, a publishing firm that once owned The Financial Times and The Economist. Mr. Currie has been in the tech world for quite a while, first gaining a high profile as the CFO of Netscape. He serves on the board of many tech start ups, and he’s often sought for advice.
Twitter looks for a reason to grow
Twitter shares have been fairly stable since their price crashed toward the end of July, but that doesn’t mean that those holding parts of the firm are happy. The value of the micro-blogging platform sits right above the price it went public at last year, and those that bought in just three months ago have lost more than 20 percent of the value of their holding.
Mr. Peck still thinks that there’s good things ahead for Twitter. He reckons that the firm still has a lot of potential, and has a price target of $38 on the firm’s shares.
As has been the case for many months, Twitter’s future still turns on the progress the firm’s board makes in finding a CEO. Mr. Peck reckons that it is “critical” that those serving on the board have significant ownership in the firm itself.
If members of the board, who are charged with finding a new CEO, are planning to leave that could hurt the progress made in that search. That in turn could harm shares going forward, though everything depends on when Twitter finally reveals its CEO, and whether Jack Dorsey plans to stay at the firm.