Skift Take
Gary Kelly has been a part of the Southwest family for almost four decades. Will his departure and that of six other board members be enough to keep Elliott happy?
Southwest Airlines chairman Gary Kelly plans to retire from the companyâs board at the end of his term in 2025, the carrier said in a statement Tuesday morning. Six other directors will also leave the board.
The announcement comes after Southwestâs board of directors met with Elliott Investment Management on Monday. The hedge fund put up an 11% activist stake in the airline, pushing for Kelly and CEO Bob Jordan to resign.
However, Southwest said Jordan continues to have unanimous support from the board and leadership team.
For his part, Kelly wrote an open letter to Southwest shareholders detailing the decision to retire.
Southwest said it âintends to continue its constructive engagement with Elliott toward a collaborative resolution in the near term.â
Elliott previously described Southwest’s board as being “profoundly out of touch.”
This is a breaking story that will be updated.
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