Investor pressure leads to Southwest boardroom upheaval
Southwest Airlines Chairman Gary Kelly is set to retire and several board members are also stepping down.
It comes as the airline is under pressure to make fundamental structural changes by activist investor Elliott Investment Management.
Elliott now has a 10% stake giving it the ability to put some of its strategic ideas to a vote.
The hedge fund has also called for the ousting of the CEO Robert Jordan.
A Southwest SEC filing said six directors will step down in November.
The airline will propose four new board members which may include external candidates that Elliott has already said it would like to see appointed.
The Southwest board also plans to announce an updated business plan at its investor day later this month.
Elliott says Southwest’s management has dropped the ball since the pandemic and it has underperformed.
The airline’s stock value is down by half since 2021.
Elliott says Southwest has been slow to adapt to changing customer preferences and adopting more efficient technology.
The latter was partly responsible for a mammoth IT meltdown in late 2022 which cost the airline hundreds of millions.
Related News Stories: Partner News – TravelMole Holiday Extras – TravelMole Intrepid Travel – TravelMole
Related News Stories: Investor pressure leads to Southwest boardroom upheaval Southwest Airlines Board Shakeup Reflects Rising Pressure From ... Dana Young stepping down as Visit Florida chief William "Bill" Swelbar on LinkedIn: A Feeble Attempt Describing a ... Southwest director buys 3.6 mln shares, opposes more leadership ... Elliott targets Southwest board in bid to shake up leadership ... 2022 One Report | Southwest Airlines I Don't Understand This Plan, but Elliott's Showdown with ... Southwest Shakes Up Boardroom In Deal With Activist Elliott - Law360 Southwest director buys 3.6 million shares, opposes more ...
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
San Antonio on the Rise: David Gonzalez Talks Travel, Culture, and Growth
Anna Marie Presutti on San Francisco’s Tourism Revival and Global Outlook
Exploring Brooklands Museum with Alex Patterson
British cruise guests arrested for skipping onboard bill
Royal Caribbean issues Legionnaires’ disease warning
Aer Lingus revs up for Europe’s only direct Indianapolis route
Payday booking spikes replacing traditional peaks
Affordable Luxury Travel rebrands to Luxtripper