Elliott Investment intends to nominate 10 candidates for Southwest Board
Southwest shareholder Elliot Investment is continuing its publicly outspoken criticism of the airline, with the investment firm having now suggested significant changes to Southwest Airlines’ board of directors.
Elliot Investment Management – which manages funds that equate to around a 11% share in the airline – has previously called for sweeping change within Southwest; including a shake-up of the board, the appointment of new leaders, and the undertaking of a comprehensive business review.
In its latest move, Elliot has proposed ten “independent, highly qualified candidates,” selected through what it terms a “months-long search for the best individuals with the optimal mix of backgrounds and expertise to address Southwest’s current challenges and deliver on the company’s potential”. It now plans to “move forward expeditiously to formally nominate the candidates”.
In a statement, Southwest stated that it has “consistently sought to engage constructively and in the best interests of all shareholders,” something it believes Elliott has “dismissed at every turn;” with Elliott’s public announcement of the board nominations at odds with a recently-agreed meeting this September to “discuss a collaborative resolution”.
“Southwest Airlines is committed to maintaining strong, independent board with the right mix of skills and experience,” continued the airline. “As part of its continued refreshment efforts, the board has appointed a total of eight new independent and highly qualified directors over the last three years”.
Among Elliott’s named list of candidates – whose “strong qualifications” Elliot deems to “stand in contrast to those of the current Board” – are former CEO of Virgin America David Cush, former CEO of Air Canada Robert Milton, former CEO of WestJet Gregg Saretsky, and former deputy CEO, COO CFO of Ryanair Michael Cawley. They are joined by numerous other individuals with industry experience across the Department of Transportation, Marriott International, Meta, JetBlue.
Southwest continues to firmly refute Elliot’s criticisms, with the airline’s board and executive leadership team concluding: “We are confident that Southwest Airlines has the right leadership team in place to evolve the business and to lead Southwest Airlines forward.
