The airline announced the appointment of six new board members from the slate Elliott previously put forward, giving them a bigger presence inside the company, along with the accelerated retirement of board chairman Gary Kelly.
Board Appointments Include Former Aviation CEOs, Travel Leaders, and Regulators
The six new board members reflect a wide variety of experience across the travel industry, including former aviation chief executive officers. The slate of new board members includes:
- David Cush, former CEO of Virgin America
- Sarah Feinberg, former administrator at the Federal Railroad Administration and chief of staff to the U.S. Secretary of Transportation
- Dave Grissen, former group president of Marriott
- Gregg Saretsky, former CEO of WestJet
The group will join the board on November 1, 2024. On the same day, Gary Kelly will step down from being the chairman of the board and will move to the role of chairman emeritus. The new board will work together to elect a new independent board chairman.
“On behalf of the Board, I want to thank Gary for his countless contributions to Southwest throughout his career,” Rakesh Gangwal, one of the directors at Southwest, said in a press release. “He leaves an indelible mark on Southwest as a pioneer of the Company’s growth into the largest domestic carrier with an industry leading network, reputation, balance sheet and a bright future.”
The compromise effectively ends a proxy war that was to be settled with Elliott Investment Management calling for a special shareholder meeting later this year. With the move, the activist investor will have a significant role on the board but will not have the control they initially sought. In a statement, leaders for Elliott say the moves “will position the Company to enhance business performance, drive operational execution and evaluate additional changes to create long-term shareholder value.”
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Source: frugal travel guy