Southwest Chair Gary Kelly to step down amid activist pressure

Published On Sep 10, 2024, 4:33 AM

Gary Kelly, the Executive Chairman of Southwest Airlines, announced his retirement after the next annual meeting in response to pressure from activist investor Elliott Investment Management. This comes as six board members are stepping down, indicating a shift in corporate governance as the airline faces challenges in innovation and performance since the pandemic. Elliott has been advocating for a comprehensive review of Southwest's strategies and operations as part of their engagement with the board to enhance corporate governance.

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Stock Forecasts

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Given the increasing pressure from activist investors, there may be volatility in Southwest's stock price as the company navigates changes in leadership and corporate governance. However, if the new board members implement effective strategies that resonate with shareholders and improve operational performance, it could lead to a stabilization or increase in stock price in the medium to long term.

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