Southwest Airlines has appointed six new directors to its board as part of a settlement with activist investor Elliott Investment Management, effectively ending a long-standing dispute that was likely to escalate into a proxy battle.
Of the six new directors, five have been nominated by Elliott, bringing a wealth of experience to the board:
- David Cush: Former CEO of Virgin America
- Sarah Feinberg: Former head of the Federal Railroad Administration and a past official at the Department of Transportation
- Dave Grissen: Former Group President of Marriott International
- Gregg Saretsky: Former CEO of WestJet
- Patricia Watson: Current chief information and technology officer at NCR Atleos
- Pierre Breber: Former chief financial officer of Chevron
As part of the changes, Southwest’s chairman, Gary Kelly, will retire earlier than planned, on November 1, alongside other outgoing directors. The board intends to appoint a new independent chairman following these transitions.
Recent discussions had indicated that Elliott and Southwest were nearing a settlement after the hedge fund called for a special meeting on December 10 to discuss board representation. With the new appointments, it appears that Southwest CEO Bob Jordan will retain his position, countering Elliott’s previous calls for his resignation, which the board had publicly supported.
Elliott has decided to withdraw its request for the special meeting, expressing optimism about the strategic changes announced by Southwest and the introduction of independent directors to enhance business performance and create long-term shareholder value.
In related news, Southwest CEO Bob Jordan is slated to speak at the Skift Aviation Forum in Dallas on November 12, highlighting the airline’s ongoing developments and future direction.
Airlines Sector Stock Index Performance Year-to-Date
- The performance of airline sector stocks is tracked within the ST200 index, which includes publicly traded companies in global markets.
- This index encompasses a diverse range of airlines, from network carriers to low-cost carriers, along with related businesses.
- The Skift Travel 200 (ST200) is a comprehensive measure that aggregates the financial performance of nearly 200 travel companies valued at over a trillion dollars, showcasing industry trends and dynamics over the year.
