Southwest Chairman Gary Kelly to Step Down After Activist Pressure
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 company’s board at the end of his term in 2025 after the annual shareholder meeting, the carrier said in a statement Tuesday morning. Six other directors will leave the board in November.
The announcement comes after Southwest’s 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. The carrier also plans to nominate four independent directors to its board and will consider Elliott's recommendations.
Gary Kelly (right) with Southwest founder Herb Kelleher. Southwest AirlinesIn a le
