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Elliott Preparing for Proxy Fight at Southwest Airlines, Could Nominate Up to 10 Directors

Hedge Fund Pushes for Leadership Changes

Elliot Management, an activist investor with a stake in Southwest Airlines, is reportedly planning to launch a proxy fight at the company.

According to Reuters, sources familiar with the matter say that Elliott is preparing to nominate up to 10 directors to the company's 15-person board. This move comes after the hedge fund expressed concerns about Southwest's leadership, including its CEO Bob Jordan, and called for “significant” changes.

In a letter to Southwest's board, Elliott reportedly criticized the company's performance, particularly in areas such as operational reliability, customer service, and cost control. The hedge fund also expressed dissatisfaction with the board's oversight of the company and its lack of independent directors.

Southwest Airlines has responded to Elliott's criticisms by highlighting its strong safety record, customer satisfaction, and financial performance. However, the company has also acknowledged that it faces challenges, including ongoing labor negotiations and industry headwinds.

The potential proxy fight could shake up the leadership of Southwest Airlines, which has long been known for its employee-centric culture and customer-focused approach. The outcome of the fight will likely depend on the support Elliott can garner from other shareholders and whether the company can effectively address the concerns raised by the activist investor.