Why Twitter Hired Ned Segal as CFO
Who is Ned Segal?
Twitter (TWTR) announced on Tuesday, July 11, 2017, that it has hired a new CFO (chief financial officer), Ned Segal. He comes from financial software producer Intuit (INTU), where he served as senior vice president of finance. TWTR stock rose 3.1% on Tuesday.
Segal also has investment banking experience after spending nearly 17 years at Goldman Sachs (GS). He worked closely with Anthony Noto, who is now the COO (chief operating officer) of Twitter. Segal’s annual salary will be half a million dollars, and he will receive around 795,000 Twitter shares.
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What’s Twitter trying to address?
Twitter is trying to address a host of vacancies created recently at the company. They include vice president of products Josh McFarland, vice president of finance Celia Poon, and chief technology officer Adam Messinger.
The social messaging platform has struggled to convert its popularity into profits. In 1Q17, Twitter announced declining revenue for the first time since its IPO (initial public offering) in 2013. And as the graph above shows, the growth in monthly active users has slowed down considerably over the last few years.
Twitter stock has risen ~30.0% in the past three months. However, at $18.70, it’s trading at a fraction of the high of $69 in 2014, one year after its IPO.