Southwest Airlines activist Elliott threatens proxy fight for new leadership
Publishing timestamp: 2024-07-08 15:15:42
Summary
Elliott Management is seeking to push for leadership changes at Southwest Airlines through a special shareholder vote, threatening a proxy fight if management does not negotiate. The activist investor is seeking the ouster of the CEO and executive chairman, citing underperformance and stagnation. Southwest has added a new board member and implemented a poison pill provision to limit shareholder stakes. Elliott considers the poison pill a shield for failure and is pushing for change in the airline's management culture. Southwest is open to constructive conversations with Elliott but has criticized the activist for focusing on personal attacks.
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