Reformer pitches Musk fashionable ‘public profit construction for Twitter

A distinguished company reformer is pitching a stylish thought to Elon Musk as he takes management of Twitter Inc: Flip the social-media platform right into a “public profit company” to work for the advantage of all stakeholders, not simply traders.

Adopting the authorized construction could be certainly one of a number of methods to make sure that Twitter serves the general public curiosity, even when Musk finally sells the corporate once more or loses management, mentioned Rick Alexander, CEO of The Shareholder Commons.

“If you need an organization to be extra accountable, a PBC is an enabler,” mentioned Alexander in an interview. Different concepts his nonprofit advocacy group plans to stipulate in a letter to Musk and to high Twitter traders on Wednesday embody setting guidelines to guard Twitter’s transparency and to create an unbiased belief to implement these procedures.

As soon as Twitter is taken non-public, Alexander mentioned, “all of the stress that you simply may really feel from public shareholders to keep up a wholesome on-line discourse will go away”.

A consultant for Musk didn’t instantly reply to a request for remark.

After inking a deal to purchase Twitter for US$44 billion final week, Musk mentioned he wished to boost the platform with new options, make its algorithms open supply to extend belief, defeat spam bots, and authenticate all people.

Musk has known as himself a “free speech absolutist” and criticised Twitter’s content material moderation insurance policies. Civil society teams have known as on Twitter’s high advertisers to uphold earlier steps Twitter has taken in opposition to content material like harassment.

A former company lawyer, Alexander turned well-known as a pacesetter of B Lab, which certifies corporations as assembly social and environmental requirements.

“Public Profit Firms” are a proper construction more and more utilized by corporations after they incorporate to make clear how boards can prioritize the pursuits of stakeholders like staff and communities in addition to conventional fairness shareholders. Examples embody glasses maker Warby Parker Inc and Veeva Programs.

Some traders could also be contemplating rolling over their stake as Musk mentioned he wish to preserve as a lot of them as attainable as he takes the corporate non-public.

“Making certain that Twitter is a optimistic social drive lengthy into the longer term is way more financially materials to shareholders than receiving a premium for his or her shares in the present day,” the Shareholder Commons letter mentioned.