Another US investment company that has an investment Southwest Airlines It is calling for a complete change in the airline’s leadership team and strategic direction.
Elliott Investment Management, a hedge fund that owns 11% of Southwest Airlines’ outstanding shares, recently A searing letter He told the airline’s board that a leadership refresh was overdue and that the top executives, and board, needed to add more executives with non-airline experience.
Milwaukee-based Artisan Partners issued a similar letter on June 12. The global asset manager owns about 11 million shares of Southwest Airlines, or about 1.8 percent.
“We are following with great interest Elliott Investment Management’s recent announcement regarding its position on the company, its evaluation of its current management team and its calls for dramatic change at Southwest Airlines, including the installation of new management,” the company said.
“We have made similar points to the company’s chairman on a number of occasions over the past few months.”
Artisan Partners, without naming any names, appears to be expressing its dissatisfaction with board chairman Gary Kelly and CEO Bob Jordan. The letter calls on Southwest’s board to “restructure and upgrade the company’s management team,” adding that it believes “this process should begin immediately.”
The Dallas Morning News reports. Jordan is I have no plans to resign. It plans to follow a new strategic plan despite pressure from investment firms.
Southwest is Pushed back Defying criticism that it has been too slow to adapt to the modern aviation industry, the airline said in a June 10 letter that its current position is defined by “adherence to approaches developed decades ago.”
Southwest responded by saying, “Southwest is confident it has the right strategy, the right plan and the right team to create long-term value for its shareholders.”
Southwest was considering some big changes. For example: Abandon single-class rooms The company has promised to reveal details of its long-term strategic plan in September, before investors pressure the airline to pivot in a bold new direction.
