Costolo reportedly plans to leave Twitter’s board

Dick Costolo, the former CEO of Twitter, plans to leave the company’s board of directors by the end of the year, or when a new CEO is appointed, according to two people familiar with Costolo’s plans.

Costolo, who has served on Twitter’s board since September 2009, has considered stepping down from that role since he left the CEO position in June, according to the people, who spoke on the condition of anonymity because the plans are not public.

But Costolo decided to remain on the board while Twitter searched for a full-time chief executive officer, to avoid adding more turbulence to a period of transition. The decision to step down was Costolo’s, one of the people said.

But other changes may be coming, the sources said, as Twitter seeks to make its board more diverse. The board also includes three former CEOs, which could make it difficult for the next CEO to run the company.

A final decision on the makeup of the board is unlikely to be made until after the company chooses a CEO, the people said.

The company has faced intense scrutiny for a perceived lack of product direction and sluggish user growth. Investors have been eager to see the company appoint a successor as soon as possible in the hope that new leadership will boost Twitter’s growth prospects and, ultimately, its flagging stock price.

Twitter stock fell to about $27 per share Friday, just above its November 2013 initial public offering price of $26.

Jack Dorsey, a cofounder and former CEO of Twitter, has returned to that role on an interim basis during the search for a new leader.

But Dorsey is also CEO of Square, which has recently filed for an initial public offering.

Spencer Stuart, an executive recruiting firm, is conducting the search for the next CEO, which could take several months.

A Twitter spokesman declined to comment.