Skift Take
As Southwest promises to make changes to its business model, Elliott is still pushing its case for new leadership.
Elliott Investment Management said Monday that it is requesting a December 10 special meeting for Southwest Airlines shareholders, kicking off the hedge fundâs first proxy fight since 2017.
Elliott, which has an 11% stake in Southwest, said it wants to elect its eight nominees to the carrierâs board of directors.Â
âWe are taking this step today because the need for improved oversight at Southwest has never been more urgent,â wrote Elliott partner John Pike and portfolio manager Bobby Xu in a letter to Southwest shareholders.
Elliott has been pushing for a leadership overhaul at Southwest, including the ouster of CEO Bob Jordan. While the carrier’s chairman Gary Kelly said he would step down at the end of his term in 2025, the airlineâs board said it still supported Jordan. Ever since Elliott made its stake in Southwest public, Jordan has said he isnât planning to resign.Â
Southwest held its investor day in Dallas on September 26, where it proposed a series of changes such as assigned and premium seating, red-eye flights, capacity cuts and partnerships with international carriers. The airline also said it was implementing a $2.5 billion share buyback program.
âFor Elliott to call that plan rushed and haphazard is, in my opinion, inane,â Jordan said during the companyâs investor day.
The last time Elliott had a proxy fight was in 2017 with Arconic, a manufacturing company. That ended with Arconic making concessions to Elliott and the two ultimately had to work out a settlement, according to Reuters.
Southwest did not immediately respond to a request for comment.
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