Elliott targets Southwest Airlines board in bid to shake up leadership

Elliott Investment Management has launched a boardroom battle at Southwest Airlines seeking to replace 10 of 15 directors, as the hedge fund pushes to oust the airline's CE and improve performance, it said on Tuesday. The move is an escalation in a fight over who should lead the airline and how it should change. Southwest's stock price has fallen 24% in the last 52 weeks, as it tries to implement a turnaround plan including adding seats with more legroom, moving to assigned seats and naming a new board member in July. The board nominees by activist investor Elliott consist of former airlines chief executives, consultants and officials, including former Virgin America CEO David Cush and Robert Milton, the former CEO of Air Canada. These candidates would give shareholders a choice between the existing board or a new one that "brings relevant expertise, fresh thinking and accountability", Elliott said in a statement. Elliott said in a regulatory filing last week that it had a 7% beneficial ownership, putting it close to the 10% stake required for an investor to call a special meeting. The firm has a roughly 11% interest when also including derivatives. The hedge fund has pushed to replace both Robert Jordan, who has been CEO since 2022, and Executive Chair Gary Kelly, who had been CEO before Jordan. The company did not immediately respond to a request for comment.<br/>