Elliott Investment Management - which manages funds that together have an investment representing an 11% economic interest in Southwest Airlines – has called for a special meeting of shareholders.
Elliott has submitted a proposal to nominate eight director candidates for Southwest Airlines’ board of directors, marking a potential shift in the airline's governance.
The candidates - if elected- will replace eight current Southwest directors, they include Douglas Brooks, Eduardo Conrado, William Cunningham, Thomas Gilligan, David Hess, Gary Kelly, Elaine Mendoza and Jill Soltau.
Among names submitted in the proposal are Michael Cawley, the former deputy CEO, COO, and CFO of Ryanair, and David Cush, the former CEO of Virgin America. Also included is Sarah Feinberg, a former senior official at the U.S. Department of Transportation and the former head of the Federal Railroad Administration.
Josh Gotbaum - the former Chapter 11 trustee of Hawaiian Airlines - is also on the list, alongside Dave Grissen, the former group president of Marriott International.
Other candidates include Robert Milton, the former CEO of Air Canada and ACE Aviation Holdings and former chairman of United Airlines, Gregg Saretsky the former CEO of WestJet; and Patty Watson, currently EVP and chief information and technology officer at NCR Atleos.
“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,” said John Pike, partner at Elliott and Bobby Xu, portfolio manager at Elliott.
They added: “Absent a thorough reconstitution of its Board, the story of Southwest will remain one of empty promises and unfulfilled potential. The nominees we have put forward today are uniquely qualified to hold the Company’s executive leadership accountable and ensure that the Company delivers improved results.”
“It is time for shareholders’ voices to be heard, so that Southwest can finally deliver on its full potential for customers, employees and shareholders alike. Electing a world-class slate of exceptional director candidates is the essential first step to making this happen.”
The shareholder meeting is set for December 10, 2024.