Jack Dorsey Gives A Third Of Its Twitter Stake To Employees

The CEO of Twitter has given up 1 percent of the company's stake for employees.

Twitter Inc. is suddenly losing its charm in the social media network industry. The company was recently the most preferred one but as it is believed, the new and existing players are giving the micro blogging platform a very tough time. Hence, it is losing a good chunk of market share. The social media website now has Jack Dorsey as a full time CEO who is supposed to get things running and bring the platform how it previously was.  And certainly he has made it in the news from the very first days.

According to his official Twitter’s account, Mr. Jack Dorsey declared that it will be giving up nearly a third of his own company’s stake for employees. This means that around 1% of Twitter’s stake will be in an employee equity pool. His tweet stated, “I'm giving around 1/3 of my Twitter stock (exactly 1 percent of the company) to our employee equity pool to reinvest directly in our people. I'd rather have a smaller part of something big than a bigger part of something small. I'm confident we can make Twitter big!”

This is the only thing for which Jack Dorsey is brought in to this company. Twitter expects him to turn the tables around and do something big. Regardless of the fact that WhatsApp, Snapchat, and Instagram are currently winning the social media war where social media addicts (mostly teens) preferring all platforms except Twitter. The company also noticed a decline in its user growth as well as its monthly active users.

Jack Dorsey was named as the permanent full time CEO earlier this month. He was previously named as the interim CEO in July who replaced Dick Costolo. The former CEO resigned because of disappointing results over and over again.

Mr. Dorsey gave up almost a third of his own stakes to employees. Despite of that, he will remain as the seventh highest shareholder of the company i.e. 2.23 percent Twitter stakes. Investors and shareholders are very much concerned with company’s recent performance as well. Furthermore according to CNBC, “Wall Street analysts are increasingly negative on the one-time social media darling punctuated by Morgan Stanley's Brian Nowak's downgrade Wednesday of Twitter's stock to ‘underweight’ from ‘equal weight’.”

It is said that Twitter will keep on missing analysts’ expectations in the coming times due to its recent performances. The company will have to do a lot more to change things.