[maerek]

From an update to the article:

[Update: On the conference call, Costolo said he initiated internal conversations about leaving at the end of last year, and that following discussions in Feburary and his decision to step down, Twitter decided to begin the CEO search. Costolo said he chose to leave now because he thought staying on through the CEO search would cause scrutiny to intensify. During the Q&A, Twitter execs said that since Costolo voluntarily stepped down, there will be no severance package.]

The line about 'no severance package' seems highly unusual and would lead me to assume that this was a forceful 'push' to step down.

[argonaut]

You've got it the other way around. A forceful push is very likely to lead to a huge severance package (because that's the cost of getting someone to go quietly and stay for the transition). So the fact that he doesn't get a severance package leads me to believe it was voluntary.

[mathattack]

It's a high class way for him to leave, that may set up other options for him in the future (VC, Professorship, etc) that wouldn't be there if it was an ugly breakup.

Given that the stock traded at all time lows, no severance was justified. https://www.google.com/finance?cid=32086821185414

[sirkneeland]

That didn't stop Leo Apothekar for collecting $30 million in severance after tanking HP.

Nor did it stop Stephen Elop from collecting $25 million after running Nokia's devices business into the ground/arms of Microsoft (although I think technically that was structured as a "bonus")

Reminds me of some quote I heard somewhere: "CEO: where success is rewarded handsomely and failure only slightly less so"

[mathattack]

I agree completely. That's why I consider a high class way for him to exit. I was going to make a comment about Apothekar's behavior pre-empting him from having a future business career but actually it doesn't seem to harm him.

[argonaut]

Given that he was the CEO of a public company, there's a pretty good chance he had a rich severance clause in his contract in the event he was fired.

[softdev12]

I highly recommend reading Hatching Twitter (http://www.amazon.com/Hatching-Twitter-Story-Friendship-Betr...) which talks about the behind the scenes CEO transitions between first Jack Dorsey, then Ev Williams, then Dick Costolo. Both Jack and Ev were said to be forced out by the board against their will (per the book) - event though the press spin was that they left voluntarily.

I'm hoping that Nick Bilton writes a follow-up with this new Costolo to Dorsey transition. I wouldn't be surprised if Jack ends up removing the interim title and stays full time.

[austenallred]

>The line about 'no severance package' seems highly unusual and would lead me to assume that this was a forceful 'push' to step down.

It's rather normal for people to not get severance packages when they quit.

Costolo is remaining on the board, and got a ton of stock when he became CEO. Considering that he grew the company's valuation from $3 Billion to $23 Billion (7.6x for those doing the math), I can assure you he doesn't really need a severance package anyway.

[anon808]

and he's also getting a nice return on his angel investment in tellapart . . . which twitter acquired a month ago for $.5 Billion.

[Mahn]

That sounds a bit sketchy, did no one call him out for that?

[kyllo]

"Conflict of interest" is not a phrase found in the Silicon Valley dialect of English

[truthsayer1980]

Usually this is structured in a way that it's 100% legally safe like in: "I was not part of the decision (but people who highly depend on me were)"

[wozniacki]

On a related note, Jack is said to forgo compensation for his interim role at Twitter.[1]

That should put to end any doubts about whether Jack's role is indeed truly interim and not a comeback.

[1] Jack Dorsey to forgo salary to lead Twitter

http://www.marketwatch.com/story/jack-dorsey-to-forgo-salary...

[jgrahamc]

That should put to end any doubts about whether Jack's role is indeed truly interim and not a comeback.

Why? The article you link to says: "Dorsey requested no compensation for his role until the company's compensation committee agrees on a package when it conducts its annual assessment and the setting of executive compensation later in the year"

[gkoberger]

Nope, this is win-win for them.

They said interim for a reason. If it doesn't work, they can say "this was the plan all along". If it does work, they can say "this was the plan all along".

Either way, he will be paid very well – they just haven't nailed down the exact details yet, as the contract specifically states.

[mathattack]

I'm not sure what you're implying? That he doesn't want to stick around? Jobs didn't take a salary after his return.

[wozniacki]

My hunch is that Jack won't/can't stick around for three reasons :

  a) He has another company to save which is in itself a
  full time job, given how hot the payments space is.

  b) If Twitter should ultimately (and rather ingloriously)
  be sold to say a Alibaba or Facebook or (longshots)
  Microsoft or Google, Jack wouldn't want to be the guy who 
  'trimmed the fat' and right-sized it for a sale. It wouldn't
  be good for his personal brand. 

  c) Twitter hasn't yet found an identity - even with
  300 MM users (even Costolo hasn't contested this as
  recently as May, in an interview [1]). Jack can only
  breathe life into it, if he makes one hell of a pivot away 
  from the way Twitter is perceived by the masses - way
  too confusing to use for most [2] and lacking an identity
  (People still ask of Twitter what they don't of Facebook - 
  what Twitter will be when it has finally grown up)[3]

  Bonus reason : Twitter has gone through 5 product heads
  in the five years while Costolo was at the helm. A part 
  of me wants to believe that it is not all the fault of 
  Costolo and that Twitter needs a fundamental rethink. 
  I doubt Dorsey is willing to do it. I just don't think 
  he can, unless he gives up his gig at Square. 

[1] [3] Twitter CEO Dick Costolo Q&A: What to Do When People Say ‘You Suck’

http://www.bloomberg.com/news/articles/2015-05-07/twitter-ce...

[2] Twitter redesigned its confusing, unattractive homepage

http://qz.com/384517/twitter-redesigned-its-confusing-unattr...

[meatysnapper]

Don't forget that the legacy of product chaos started with Jack.

[matt4077]

Wouldn't a 'forceful push' be the exact reason for a severance package? It's usually compensation for someone leaving before their contract is up.