Twitter announced Tuesday it is suspending CEO Jack Dorsey for violating the company’s policies in connection with a $1.6 million payout to employees.
In a letter to employees, the company said Dorsey was suspended for a violation of the company rules related to paying employees for work performed in accordance with company policies.
The suspension applies to Dorsey’s “substantial role” as the company chairman of Twitter’s board.
Twitter said in its statement that it will also investigate how it handled the payout and will not discipline Dorsey.
The payout was a significant source of income for Dorsey, who also serves as chief operating officer of Twitter, as well as the chief content officer.
Twitter also disclosed that Dorsey will be paid $500,000 in severance and $1 million in stock awards.
The news comes a day after Twitter announced it is removing its ban on Twitter employees using a program that lets users send videos to celebrities, including actors, musicians, and political figures.
The company said Tuesday it would also terminate Dorsey over the use of the program.
The program was designed to help people find jobs in search of work after being unemployed for some time.
Dorsey had used the program since it was launched in May and began to take advantage of the new feature after a few employees discovered it was available, according to people familiar with the matter.
In March, the program was taken off Twitter’s website.
Twitter is a pioneer in digital content, a company that uses algorithms to search for and curate popular and popular-suspect content on the site, including images, videos, tweets and audio.
The site’s success has helped drive the growth of social media and the proliferation of mobile apps.