Clicky

  • Login
  • Register
  • Submit Your Content
  • Contact Us
Wednesday, August 21, 2024
World Tribune
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
Submit
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
No Result
View All Result
World Tribune
No Result
View All Result

Southwest investor asked the board to dump its CEO over the airline’s struggles. Now it wants to oust the board.

August 14, 2024
in Business
Reading Time: 2 mins read
A A
Southwest investor asked the board to dump its CEO over the airline’s struggles. Now it wants to oust the board.
0
SHARES
ShareShareShareShareShare

Southwest investor asked the board to dump its CEO over the airline’s struggles. Now it wants to oust the board.

Elliott Investment Management plans to nominate a slate of candidates for Southwest Airlines Co.’s board, escalating the activist investor’s push for sweeping changes at the struggling carrier, according to a person familiar with the matter.

Elliott will nominate as many as 10 directors and call a special meeting for investors to vote on the nominees, said the person, who asked not to be named because the plans are confidential. The activist has to amass a 10% stake in Southwest before it can seek the gathering, which it expects to occur before the airline’s annual meeting next spring. 

The launch of a proxy fight marks a major escalation by Elliott after building a large stake in Southwest earlier this year. The investor has demanded major changes, including ousting Chief Executive Officer Bob Jordan and Chairman Gary Kelly. It’s criticized the carrier for refusing to adopt changes that have spread across the industry, causing its stock to plummet over the last few years.

Southwest has not heard from Elliott and is not aware of their plans, a spokeswoman said.

Southwest shares rose 1% at 6:38 p.m., after the end of regular trading in New York. The stock has tumbled 12% this year through Tuesday’s close.

The airline announced dramatic changes to its business model last month, including assigned seating, a new premium-class option and plans for red-eye flights — moves the company sees as boosting sales and enhancing its appeal. While Southwest said earlier this year that it was considering the changes, it faced heightened pressure to revamp under-performing operations from Elliott.

Southwest has struggled this year with slowing growth, fewer-than-expected aircraft deliveries from Boeing Co. and a series of flight-safety incidents that triggered a Federal Aviation Administration review. Strains on the business were underscored in the company’s recent guidance that revenue and costs in the current quarter were worse than Wall Street’s estimates.

Elliott has criticized Jordan and Kelly, who was CEO prior to Jordan, for poor execution and a “stubborn unwillingness to evolve the company’s strategy.” They are “not up to the task of modernizing Southwest,” the activist has said. It’s also called for a reconstituted board, criticizing the lack of airline experience and independence among current members.

Southwest last month named a veteran airline industry executive to its board to help address other concerns raised by Elliott. The carrier also adopted a “poison pill” shareholder rights plan to discourage the activist from gaining a larger share.

The Wall Street Journal reported Elliott’s plans earlier.

Recommended Newsletter: CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about–and from inside–the C-suite. Subscribe Now.

Credit: Source link

READ ALSO

The EU wants no corner of the digital sphere left untouched, warning X and AI could be next

Federal judge derails FTC’s sweeping ban on non-compete agreements

ShareTweetSendSharePin
Previous Post

Aaron Rodgers does it all in one of his best day at Jets camp

Next Post

What Australian GPs should consider before adopting AI scribes

Related Posts

The EU wants no corner of the digital sphere left untouched, warning X and AI could be next
Business

The EU wants no corner of the digital sphere left untouched, warning X and AI could be next

August 21, 2024
Federal judge derails FTC’s sweeping ban on non-compete agreements
Business

Federal judge derails FTC’s sweeping ban on non-compete agreements

August 21, 2024
How to watch, stream the Democratic National Convention Night Two live online free without cable, on NBC, ABC, CBS, Fox, CNN, MSNBC
Business

How to watch, stream the Democratic National Convention Night Two live online free without cable, on NBC, ABC, CBS, Fox, CNN, MSNBC

August 21, 2024
We’re Gen Z college dropouts who raised .4M for our blockchain startup. Here’s how we did it
Business

We’re Gen Z college dropouts who raised $41.4M for our blockchain startup. Here’s how we did it

August 20, 2024
MLB legend Derek Jeter’s best business advice
Business

MLB legend Derek Jeter’s best business advice

August 20, 2024
Elon Musk’s litigation strategy is about ‘punishing defendants for their speech’
Business

Elon Musk’s litigation strategy is about ‘punishing defendants for their speech’

August 20, 2024
Next Post
What Australian GPs should consider before adopting AI scribes

What Australian GPs should consider before adopting AI scribes

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What's New Here!

Tyrese Haliburton pokes fun at self over lack of Olympic playing time for Team USA

Tyrese Haliburton pokes fun at self over lack of Olympic playing time for Team USA

August 12, 2024
Yankees will not play Old-Timers’ game for third straight year

Yankees will not play Old-Timers’ game for third straight year

July 25, 2024
Yankees soak in awestruck Little Leaguers prior to Tigers game

Yankees soak in awestruck Little Leaguers prior to Tigers game

August 19, 2024
A’ja Wilson calls Kahleah Copper ‘that bitch’ after Olympic heroics

A’ja Wilson calls Kahleah Copper ‘that bitch’ after Olympic heroics

August 11, 2024
Here are the top 5 European destinations for Americans heading abroad this summer, but rising costs are putting travel out of reach for many

Here are the top 5 European destinations for Americans heading abroad this summer, but rising costs are putting travel out of reach for many

July 31, 2024
Man threatened to shoot Chiefs players at Morgan Wallen concert attended by Mahomes, Kelce: cops

Man threatened to shoot Chiefs players at Morgan Wallen concert attended by Mahomes, Kelce: cops

August 4, 2024
A quiet revolution is transforming business investment

A quiet revolution is transforming business investment

August 12, 2024

About

World Tribune is an online news portal that shares the latest news on world, business, health, tech, sports, and related topics.

Follow us

Recent Posts

  • Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says
  • The EU wants no corner of the digital sphere left untouched, warning X and AI could be next
  • Kevin James recreates viral video in electric Mets moment
  • Japan trade on deck, Wall Street rally pauses

Newslatter

Loading
  • Submit Your Content
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2024 World Tribune - All Rights Reserved!

No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food

© 2024 World Tribune - All Rights Reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In