Southwest Airlines Executive Chairman Gary Kelly, along with six directors, will move up their retirement dates as part of an agreement with Elliott Investment Management, the airline says.
Southwest has appointed several new independent directors, including David Cush and Sarah Feinberg, effective Nov 1., as part of an agreement with Elliott Investment Management.
Kelly, the airline's former CEO, will retire and become Chairman Emeritus, with the board shrinking to 13 members by the 2025 Annual Shareholder Meeting.
The refreshed board aims to enhance oversight and drive the company's transformational plan under the leadership of CEO Bob Jordan.
Elliott partner John Pike praised the agreement, expecting the new directors to bring valuable skills and improve long-term shareholder value.
Rakesh Gangwal thanked Kelly for his significant contributions to Southwest, highlighting his role in the company's growth.
The board will focus on preserving Southwest's unique business model while driving growth and financial performance. Elliott has agreed to a cooperation agreement, including standstill and confidentiality provisions, withdrawing its request to call a Special Meeting of Shareholders.
The company believes the strategic changes and governance improvements will enhance business performance. The new independent directors will help oversee Southwest's operations and support its transformational plan.
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