Southwest Airlines Director Invests $100 Million to Counter Activist Investor Pressure

Rakesh Gangwal's significant stock purchase aims to stabilize leadership amid Elliott Management's demands for change.

Rakesh Gangwal, a Southwest Airlines director, bought 3.6 million shares, valued at over $100 million, to support the current leadership against Elliott Investment Management's pressure.
Elliott Investment Management, holding an 11% stake in Southwest, is pushing for major leadership changes, including replacing CEO Bob Jordan.
Gangwal opposes further leadership changes, stating they would be counterproductive and not in shareholders' best interests.
Southwest has recently announced a board overhaul, including the retirement of Executive Chairman Gary Kelly and six other directors.
The airline's stock has reacted to these developments, with fluctuations reflecting investor sentiment regarding the ongoing boardroom dynamics.