In a press release, the activist investor is demanding a special meeting for December 10, 2024, and is pressuring Southwest leadership to confirm the date “without unnecessary delay.”

 

Special Shareholder Meeting Demand Furthers Proxy War with Southwest

With Elliott owning a significant share in Southwest, the carrier has worked with the investment management firm to quell some of their demands. Among them were the retirement of board chairman Gary Kelly, changes to their boarding process, and adding overnight flights.

 

In demanding the special shareholder meeting, Elliott is escalating their proxy war with the Dallas-based airline. The agenda for the meeting would seek to install eight director candidates to their board, including former high-ranking leaders in the transportation and hospitality industries. Some of the candidates include:

 

• Michael Cawley, the former deputy CEO, COO and CFO of Ryanair
• David Cush, the former CEO of Virgin America
• Sarah Feinberg, a former senior official at the Department of Transportation and former head of the Federal Railroad Administration
• Gregg Saretsky, the former CEO of WestJet

 

The eight would replace current Southwest board members, including Kelly.

 

“We are taking this step today because the need for improved oversight at Southwest has never been more urgent,” Elliott partner John Pike and portfolio manager Bobby Xu said in a statement. “Following Elliott’s public push for changes, Southwest has responded with a series of long-overdue strategic and corporate-governance initiatives, promising that better performance will follow. However, Southwest’s shareholders have heard these sorts of promises before, and what they need today, at the outset of this attempted turnaround, is an experienced, highly qualified Board to oversee the changes and ensure successful execution. Southwest’s shareholders cannot afford to see – yet again – today’s new initiatives turn into tomorrow’s broken promises.”

 

In a response, Southwest says their board will “discuss the process for setting a Special Meeting with Elliott in a constructive manner.” The airline is accusing Elliott of trying to take control of the board through their slate of prospective directors.

 

“Unfortunately, Elliott remains entrenched in demanding control of the Board, while continuing to block its Director candidates from being interviewed by the Board’s Nominating and Corporate Governance Committee, making it impossible to find a constructive resolution,” Southwest said in a statement. “For nearly four months, Elliott has failed to offer any substantive feedback on Southwest’s strategic plan… Elliott’s failure to provide actionable feedback, coupled with the disruptive nature of its demands, should give Shareholders pause about Elliott’s true intentions.”

 

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Source: frugal travel guy