Major Airline Exec Steps Down As Company Faces Unprecedented Headwinds After Decades Of Profits
Southwest Airlines Executive Chairman and former CEO Gary Kelly will retire following a Monday meeting with activist investor Elliot Investment Management, according to a letter from Kelly shared with shareholders…
Southwest Airlines Executive Chairman and former CEO Gary Kelly will retire following a Monday meeting with activist investor Elliot Investment Management, according to a letter from Kelly shared with shareholders Tuesday.
Elliot has sought leadership change since revealing they’d acquired a roughly $2 billion stake in the airline in June, pushing to oust various members of Southwest’s C-Suite — including CEO Bob Jordan — due to what the investment firm described as “stunning underperformance,” CNBC reported. Jordan’s job appears safe for the moment, with Kelly stating in his letter that “the Board and leadership of Southwest unanimously support Bob Jordan as CEO,” but the airline will still undergo a major shakeup in leadership, with six of its board members now set to retire in November.
“Bob Jordan has the right team and the right plan for Southwest’s future, and he has all the tools and expertise needed to ensure its successful execution,” Kelly wrote in the letter. “The Company has a tremendous amount of work to do but the path is clear.”