A special board meeting at Southwest Airlines could be called next week...and that could lead to a proxy fight at the Dallas-based airline.
Activist investor Elliott Investment Management says the company's leadership needs to be overhauled and now that they have an 11% stake in the company, they are calling the board meeting to see that those changes happen.
They had previously called for the ouster of Southwest Airlines CEO, Robert Jordan, and Gary Kelly. In response, Southwest announced six board members were stepping down and Kelly would voluntarily retire in 2025. But Elliot says that's not enough, claiming Southwest's management and board have chosen a go-it-alone path with a goal of obstructing a leadership change that is urgently needed.
Southwest recently announced they would be switching to assigned seating next year. But Elliot believes a lot more is needed and the airline is heading towards turbulent times if they do not correct course.
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