San Diego, California – A significant development is underway for Southwest Airlines as activist investor Elliott Investment Management is reportedly nearing a settlement deal that would grant a substantial presence on the airline’s board. The potential agreement, anticipated to be finalized by Thursday, marks a pivotal moment in a recent clash between Elliott and Southwest Airlines.
Elliott had been gearing up for a proxy fight, aiming to appoint 10 new members to the board, with a key focus on replacing Executive Chairman Gary Kelly and CEO Bob Jordan. The activist’s campaign has centered on their belief that Kelly and Jordan, both longtime figures at Southwest Airlines, should step down. While Southwest announced Kelly’s upcoming departure next spring, the board continues to support Jordan.
Negotiations between Elliott and Southwest have been ongoing for months, with various settlement offers exchanged. This impending deal marks a potential turning point in the power dynamics within the airline company. Details about Jordan’s future as CEO under the terms of the settlement remain undisclosed.
Southwest Airlines is scheduled to release its third-quarter financial results this Thursday, followed by a call with analysts led by CEO Bob Jordan. This critical juncture in the company’s leadership structure comes amidst ongoing discussions between Elliott and the airline, shaping the future direction of Southwest Airlines.
As the industry waits for the official announcement of the settlement deal and watches for any significant changes in leadership, the outcome of these negotiations will undoubtedly have lasting effects on the operations and strategic decisions of Southwest Airlines.