Southwest Airlines is poised to go through a significant leadership shakeup after an activist investor pushed for change.
As previously relayed by The Dallas Express, a proxy fight has been simmering ever since Elliott Investment Management moved to boost its stake in the troubled airline following declining share value and high-profile debacles.
In addition to the various seemingly poor business decisions that have given the company a number of black eyes in recent years, Southwest’s leadership has been investing in various “diversity, equity, and inclusion” initiatives.
Earlier this year, the company’s leadership announced that it would be “doubling racial diversity” and “increasing gender diversity” on its “Senior Leadership team by 2025.” Southwest said it will also increase “diverse representation on the Southwest Airlines Board of Directors,” according to an internal company presentation posted on X.
The prevalence of DEI initiatives across the airline industry has drawn scrutiny following a number of high-profile mishaps (and in the case of Boeing, deadly crashes).
“If you’re looking for a diverse workforce and not a qualified workforce, you’ve got issues,” an American Airlines pilot previously told The Epoch Times. “We’re not putting the best up-front.”
Regardless, here is some of what CNBC reported on the leadership changes at Southwest Airlines:
Southwest Airlines said Tuesday that executive chairman and former CEO Gary Kelly will retire next year and announced a board shake-up, moves that come as the carrier faces pressure for changes by activist investor Elliott Investment Management.
“Now is the time for change. It’s time to shake things up, not just stir them a bit,” Kelly said in a letter to shareholders. “The wisdom comes in knowing what to change and what not to change.”
Kelly, 69, who has worked at Southwest for nearly four decades and has been chairman since the carrier’s co-founder, Herb Kelleher, retired in 2008, announced he would step down after the company’s annual shareholder meeting next spring. The announcement came after a meeting with Elliott, which has been calling for leadership changes at the Dallas-based carrier.
Elliott in June revealed a nearly $2 billion stake in Southwest, seeking to oust leadership, including CEO Bob Jordan, 63, who has also spent almost four decades at the carrier and took over from Kelly in 2022. The firm said Southwest has had “stunning underperformance” under their leadership.