Wednesday, August 14, 2024 Elliott Investment Management L.P., overseeing funds with a collective 11% economic stake in Southwest Airlines, Inc.
(NYSE: LUV), announced its intention to propose ten independent and well-qualified individuals for election to the airline’s Board of Directors. Elliott is set to quickly proceed with the formal nomination of these candidates. Elliott has proposed a trio of strategic initiatives aimed at revitalizing Southwest’s premier status in the industry: revitalizing the board’s composition, ushering in new executive leadership, and embarking on an in-depth review of business practices.
The recent declaration marks a significant advancement in implementing these critical reforms at Southwest. The need for swift action is amplified by the marked ongoing decline in Southwest’s performance since Elliott first released its findings on June 10, alongside the Board’s subsequent actions that further solidify its position and hinder transformative efforts. Upon their appointment, these nominees would offer shareholders an alternative to the incumbent Board, which has been criticized for yielding subpar shareholder returns and failing to hold executives responsible for Southwest’s unsatisfactory performance.
In contrast, the proposed Board promises to inject new expertise, innovative perspectives, and a higher level of accountability. These nominees were identified after an extensive global search aimed at finding individuals ideally suited .