Southwest urged by second big investor to replace leadership

A second major Southwest Airlines investor has joined the call for a shakeup in the carrier’s board and executive leadership team, upping the pressure for change. Artisan Partners Limited Partnership, Southwest’s ninth-largest shareholder, urged the board in a letter on Wednesday to “reconstitute itself and upgrade company leadership” in order to fairly assess the path forward for the airline. “We believe this process needs to commence immediately,” Artisan said in the letter. Artisan becomes the second Southwest investor to call publicly for major changes at the carrier due to frustrations with the company’s lagging financial performance and insular corporate culture. It joins activist Elliott Investment Management, which on Monday publicly disclosed a $1.9b stake in the airline and demanded new leadership and a revamp of Southwest’s business to better compete with other airlines. Artisan’s letter came hours after Southwest Chief Executive Officer Bob Jordan said he would resist Elliott’s call to step down as the company considers a variety of changes to improve its performance. “I have no plans to resign,” Jordan told reporters Wednesday following an appearance at an aviation event in Washington. “My 150% focus is on supporting our employees, doing good for our customers and executing the wonderful plan we have to get better.” The remarks were Jordan’s first since Elliott publicly revealed its stake, making it one of Southwest’s biggest shareholders. Elliott also demanded an overhaul of the airline’s strategy and specifically criticized Jordan and Executive Chairman Gary Kelly for poor execution and a “stubborn unwillingness to evolve the company’s strategy.”<br/>