“In a clear display of poor leadership, CEO Bob Jordan declined to testify in front of Congress after the meltdown, despite attending a company rally just 40 miles away in Baltimore the prior day,” the letter said.
Elliott takes $1.9 billion stake in Southwest Airlines : Board Composition and Experience
Elliott also criticized the board’s composition, noting that most members were selected by Kelly and that the senior executives lack adequate experience to enhance the airline’s performance. “Of the eight most senior executives, only one executive has experience at another airline,” the letter stated.
Elliott’s Request for Collaboration
Elliott, based in West Palm Beach, Florida, and managing around $65.5 billion in assets as of Dec. 31, requested a meeting with the board at the “earliest convenience.” The firm expressed its desire to collaborate with Southwest to “restore accountability and best-in-class financial performance for the benefit of the company’s employees, customers, and shareholders.”
Southwest Airlines’ Response
In response, a Southwest spokesperson stated that the company was first contacted by Elliott on Sunday and looks forward to “better understanding their views on our company.” The spokesperson defended the CEO and management, saying, “We maintain an open dialogue with our shareholders and value their perspectives related to enhancing shareholder value. The Southwest board of directors is confident in our CEO and management’s ability to execute against the company’s strategic plan to drive long-term value for all shareholders, safely and reliably serve our customers, and deliver on our commitments to all of our stakeholders.”
