Categories: BusinessUS News

Southwest Airlines makes changes to board composition following shareholder pressure

Southwest Airlines is set to make changes to its board of directors, with the chairman planning to retire next year. Despite pressure from hedge fund Elliott Investment Management, the airline has decided to retain CEO Robert Jordan following a meeting between the two parties. Elliott had been pushing for leadership changes at Southwest, including the removal of Jordan.

In a statement on Tuesday, Southwest announced that six current directors will be stepping down from the board in November. The company also revealed its intention to bring on four new directors, potentially including individuals recommended by Elliott. The hedge fund, led by billionaire investor Paul Singer, has acquired a 10% stake in Southwest in recent weeks and has been advocating for measures to enhance the airline’s financial performance and stock value.

Following a meeting held on Monday between Southwest Airlines and Elliott Investment Management, it was decided that Jordan would remain as CEO despite Elliott’s push for his removal. The upcoming changes in the board are seen as part of Southwest’s response to the calls for leadership shakeup initiated by the hedge fund.

@USLive

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