Elliott Calls for December Vote to Shake Up Southwest Airlines' Board

Take Aways

• Elliott Investment Management has called for a special meeting of Southwest Airlines shareholders in December.
• The investment firm has nominated eight board candidates, and has recommended removing eight current board members.
• It is the latest volley in a back-and-forth between the firm and the airline.

Elliott Investment Management on Monday called for Southwest Airlines (LUV) shareholders to elect its slate of candidates to the company’s board.

Elliott, which says its funds own about 11% of the airline, said in a news release that it has called for a special meeting on Dec. 10. “The need for improved oversight at Southwest has never been more urgent," Elliott said.

Investopedia has previously reported that Elliott seeks to shake up the company. “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,” Elliott said. “However, Southwest's shareholders have heard these sorts of promises before."

Southwest did not immediately respond to Investopedia's request for comment. The company’s stock was down around 1% on Monday, leaving it up a bit less than 5% this year.

Elliott is nominating eight candidates to Southwest’s board, including former Virgin America CEO David Cush and Robert Milton, who previously served as United Airlines’ chairman.

The investment firm also named eight directors it wants removed, including current board chair and former Southwest CEO Gary Kelly. In a September regulatory filing, Southwest said Kelly conveyed he would retire from the board after the 2025 annual meeting.

Monday’s development is the latest volley in a back-and-forth between the airline and the investment firm. Southwest has reacted to Elliott's efforts in part by this summer adopting a one-year "poison pill" defense.

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