Twitter has recruited the former Goldman Sachs banker who helped take the messaging platform public as its chief financial officer in an attempt to bolster its board and address investor concern about slowing user growth.
Anthony Noto was Goldman’s managing director in the technology, media and telecoms investment banking group that handled Twitter’s initial public offering late last year.
In May it was announced that Mr Noto had left the investment bank for Coatue Management, a tech-focused hedge fund, although he had not yet taken up that job.
The appointment of Mr Noto to replace Mike Gupta – who is being moved to the new role of senior vice-president of investment – is the latest in a series of shake-ups instigated by Dick Costolo, chief executive.
Last month Twitter parted ways with Ali Rowghani, chief operating officer, and it recently moved its chief engineer and head of product design into advisory roles.
Twitter shares rose 3.5 per cent to $42.39 (€31) in early trading in New York.
Anthony DiClemente, an analyst at Nomura, said Mr Noto was a “strategic hire” for Twitter, adding that he “brings relationships to the investor community and can offer insights into the industry given his unique experience”.
Mr Noto will receive Twitter stock worth $64 million at yesterday’s price, vesting over four years, as part of his starting package as well as an annual salary of $250,000, which outstrips the $130,250 paid to Mr Costolo in 2013.
Mr Gupta, Twitter’s highest earner last year, received $24.6 million in shares and salary.
After a much-anticipated IPO that popped more than 70 per cent on the first day, Wall Street has become concerned about Twitter’s slowing user growth and the stock has lost more than a third of its value this year.
Some analysts question how the platform, which has 255 million users, can get to its stated aim of 1 billion users given the current quarter-on-quarter growth rate of 6 per cent. The company has been trying to redesign the site to make it easier to use and entice back those who have accounts but never use them.
Mr Costolo welcomed Mr Noto in a tweet. Mr Gupta said he was looking forward to his new role, which will involve investing Twitter’s cash in stakes in smaller companies.
– (Financial Times Ltd)
