Twitter’s chief executive Dick Costolo has shaken up his executive office once again with the appointment of Anthony Noto, former Goldman Sachs banker, as chief financial officer of Twitter. As Goldman’s managing director of the investment group including media, telecoms and technology, Noto gained fame as one of that financial institution’s “three headed monster” along with colleagues Ken Hitchner and George Lee.
Anthony Noto’s investment banking experience seems to be the main reason Twitter selected Goldman Sachs as the lead underwriter for its initial public offering and Noto playfully tweeted the message “Phew” after the successful start to Twitter’s share trading began on November 7, 2013. During the first dotcom boom, Noto began his meteoric rise at Goldman Sachs in 1999 as an internet sector analyst and became a partner in 2004. His new responsibilities as CFO for Twitter are not his first foray as a financial manager of a large company. He served as chief financial officer for the National Football League starting in 2008, returning full time to Goldman Sachs two years later as a technology investment banker.
As part of his employment package, Noto receives an annual salary of $250,000, almost twice that of CEO Costolo, in addition to Twitter stock valued at $64 million. Analysts view Noto’s hiring as a strategic move for Twitter, thanks to his strong relationships in the investment community. Although insiders contend Noto left Goldman due to internal strife within the investment banking team, Noto himself in tweeting his good-byes, called the TMT team there “the best in the world.”
Noto has his work cut out for him in the months ahead as Twitter works to redesign what was once the most popular social media messaging site in order to make it not only easier and simpler for members to use but also bring back the thousands of users who have open accounts but seldom if ever use them. Noto has acknowledged his gratitude to Coatue for making him able to accept the new position at Twitter and joins a long list of former Goldman Sachs executives who have moved into CFO positions at client companies, including Cynthia Walker at Occidental Petroleum, Adrianne Shapira at David Yurman Jewelry, and Sarah Friar at Square.