Twitter CEO Dick Costolo stepped down Wednesday, six weeks after the company reported poor earnings that drove its shares down almost 25 percent. Twitter co-founder Jack Dorsey will replace Costolo and serve as interim chief executive, effective July 1, the company said.
Twitter said in a Securities and Exchange Commission filing on Wednesday that Costolo will be stripped of all unvested stock awards when he departs. That means Costolo stands to lose just under $16 million in unvested stock awards and $6 million in forfeited options, according to company filings.
Costolo's departure was greeted with glee by investors. Twitter shares surged as much as 13 percent in after-hours trading before settling about 4 percent higher than Thursday's closing price. Perversely, Costolo's own departure increased the value of his 8 million Twitter shares by roughly $10.3 million.
The day's events ended up costing Costolo $12 million net. Twitter said he'll receive no severence pay.