The Southwest Airlines board is facing a major overhaul after a meeting was held between the carrier and the activist investor Elliott Investment Management in New York.
The two sides met on September 9, 2024, after Southwest invited the hedge-fund to “participate in refreshment efforts and other corporate governance changes”.
Elliott has criticized the running of Southwest since the summer, including a call for the resignation of CEO Robert Jordan, and has built a 10% stake since investing almost $2 billon in the airline in June 2024.
In a statement on September 10, 2024, Southwest confirmed that Chairman Gary Kelly will voluntarily retire from the board following the 2025 Annual Meeting.
In a letter to shareholders, Kelly said it had been a “great honor and privilege” to serve Southwest Airlines for the past 38 years, 18 of which were as the CEO before stepping down in 2022.
‘CEO Bob Jordan has the Board’s unanimous support’
While acknowledging that “significant changes” were necessary at the airline, Kelly told shareholders that “CEO Bob Jordan has the Board’s unanimous support”.
“While my heart will always be with Southwest and a part of me would love to continue supporting this great Company day-to-day, I recognize it is critical to demonstrate my immense confidence and support for Bob Jordan as CEO to all our Stakeholders. He and his…
Source www.aerotime.aero
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