The wolves of Wall Street can be a brutal pack. The pressure they exert is enough to make a CEO step down.

 

On Thursday, Twitter announced that their CEO, Dick Costolo, will be permanently leaving his position on July 1. Costolo has held the CEO title for five years, but he could no longer stand Wall Street’s constant scrutiny over the lack of advertisers and user growth rate.

 

Was Costolo really doing such a terrible job? A Pew Research study shows that from 2012 to 2014, Twitter had a slower adult user growth rate than LinkedIn, Pinterest, and Instagram. Despite that, Twitter was barely behind the competition and was consistently bringing in an increased number of adult users every year. Wall Street still wasn’t pleased with the growth.

 

When the announcement was made that Costolo was stepping down as CEO, Twitter’s stock rose over 7 percent. A new CEO is yet to be announced, but shareholders were positive that Costolo was the main factor holding Twitter back.

 

Photo of Jack Dorsey, co-founder of Twitter

Jack Dorsey, co-founder of Twitter, will serve as the interim CEO as of July 1, 2015. (techcrunch.com)

Twitter’s co-founder, Jack Dorsey, will take over Costolo’s duties until a replacement is found. Many are left speculating on who will be chosen as Twitter’s newest leader, but speculation is all that can be done for now.

 

Costolo was known for giving his employees the chance to present their innovative ideas to management, rather than just directing them on what they needed to do. Hopefully, Twitter’s new CEO will continue to promote innovation throughout the company.

 

At this point, it’s hard to tell if a new CEO will have a big impact on the company’s user growth rate; hopefully, this change won’t turn slow growth into no growth.

 

Will Twitter do any better now that Costolo has stepped down? Could this change do more harm than good? Leave a comment or talk to me on Twitter @Karbowski_Devon.