Elliott Investment Management is pressing Southwest Airlines shareholders to vote for its list of candidates for the company's board. Owning approximately 11% of the airline through its funds, Elliott has scheduled a special meeting on December 10 to address this. The investment firm maintains that the necessity for better supervision at Southwest is critical now more than ever.
Elliott has been known to agitate for change within the company. Following their public campaign, Southwest announced a series of strategic and corporate governance measures which were long overdue, with a pledge of enhanced performance lying ahead. However, Elliott voiced that Southwest's shareholders have previously been given similar assurances.
Southwest Airlines did not provide immediate comment upon request. The company’s stock fell by roughly 1% on Monday, putting it slightly under 5% up for the year.
Elliott's proposal includes eight nominees for Southwest’s board. Among these are David Cush, formerly CEO of Virgin America, and Robert Milton, ex-chairman of United Airlines. The firm is also calling for the removal of eight current directors, including the incumbent board chair and previous CEO of Southwest, Gary Kelly. Reports suggest that Kelly confirmed his plan to retire from the board after the 2025 annual meeting in a regulatory filing made in September.
This is just one more exchange in the ongoing dispute between the airline and the investment firm. Earlier this year, in response to Elliott's actions, Southwest adopted a one-year "poison pill" defense.