Southwest Airlines Agrees to Board Changes After Pressure From Elliott

Published On Sep 10, 2024, 10:37 AM

Southwest Airlines is undergoing significant changes to its board of directors in response to pressure from the hedge fund Elliott Management, which has been advocating for new leadership and a restructuring of the board. Executive Chairman Gary Kelly is set to retire, and the board remains supportive of CEO Bob Jordan despite Elliott's criticisms. The airline's shares have dropped nearly 3% following these developments, highlighting investor concerns about the company's management and strategic direction.

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Elliott Management's influence may lead to more drastic changes in the company's leadership and strategy, which could eventually benefit the stock if the new management implements successful reforms.

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