The activist investor Elliott Investment Management has formally called a special meeting at Southwest Airlines in an attempt to install its own pick of eight directors on the Dallas-based carrier’s board.
Elliott has now amassed an 11% stake in Southwest, and since going public about its investment in the airline in June, the activist investor has repeatedly called for Southwest to drastically shakeup its leadership team.
In late September, Elliott warned shareholders that it was preparing to call a special meeting, setting the scene for a bloody boardroom battle that could decide the very future of the much-loved airline.
Elliott has accused Southwest’s incumbent leadership of failing to effectively compete with rivals, weighing on the airline’s finances.
Following a meeting with Elliott in August, Southwest board chair Gary Kelly agreed to resign immediately after the next annual general meeting in May 2025. Incumbent CEO Gary Kelly has, however, refused to acquiesce to Elliott’s calls for him to resign.
“Today, after exhaustive attempts to persuade Southwest to implement the necessary governance changes, we are formally calling a Special Meeting to give shareholders the opportunity to elect a completely independent, best-in-class slate of director nominees,” Elliott said in a statement on Monday.
“We are taking this step today because the need for improved oversight at Southwest has never been more urgent,” the statement continued. “it’s time for shareholders’ voices to be heard so that Southwest can finally deliver on its full potential for customers, employees and shareholders alike.”
Elliott has proposed eight of its own directors, including Michael Cawley the former deputy of CEO, COO and CFO of leading European low-cost airline, Ryanair. The other proposed director nominees include David Cush, the former CEO of Virgin America, Sarah Feinberg, a former senior official at the Department of Transportation, and Josh Gotbaum, former Chapter 11 trustee of Hawaiian Airlines.
The other four nominees are Dave Grissen, former group president of Marriott Internationa, Robert Milton, the former CEO of Air Canada, Gregg Saretsky, the former CEO or WestJet and finally Patty Watson, the serving executive vice president at NCR Atleos.
In recent months, Southwest has been busy renewing its board of directors with its own picks, including Robert Fornaro, the former CEO of Spirit Airlines, and Rakesh Gangwal, the co-founder of India’s IndiGo Airlines.
Southwest has unveiled a series of measures to improve its financial performance and better compete with rivals. From early 2026, the airline will end its famous open seating policy. At the time same time, Southwest will start selling premium extra legroom seats.
The airline will also start red-eye flights as it seeks better utilization of its aircraft and plans to ink deals with international airlines to feed passengers into its own network.
Elliott has slammed many of the measures as “too little, too late” and insists that a leadership change is necessary to transform Southwest’s financial performance.
