Elliott Management Pushes for Board Overhaul at Southwest Airlines
The hedge fund calls for a special shareholder meeting to vote on eight new directors, aiming to reshape the airline's strategy.
- Elliott Management, holding an 11% stake in Southwest Airlines, has requested a special shareholder meeting for December 10 to vote on a new slate of directors.
- The hedge fund seeks to replace eight of the current board members, aiming to gain a majority and influence company strategy.
- Southwest Airlines has faced criticism from Elliott for not adapting to changing customer preferences and failing to modernize its technology.
- Despite some operational improvements, Southwest has struggled with profitability since the pandemic and has seen a significant drop in its stock price over the last five years.
- Southwest's recent initiatives, including assigned seating and new international partnerships, have been dismissed by Elliott as insufficient and poorly planned.