Elliott Calls Southwest’s Board ‘Profoundly Out of Touch’ as Activist Campaign Heats Up
Photo Credit: A Southwest aircraft at Los Angeles International Airport. Vincenzo Pace/aerovincenzo.com /
Skift Take
The hedge fund claims it now has multiple allies that support a leadership overhaul at Southwest.
Activist investor Elliott Investment Management fired back at Southwest Airlines Monday for adopting a “poison pill” and appointing a new director to its board.
“In light of these actions, we have become increasingly concerned by the 'self-help' half-measures that the Board appears to be contemplating and adopting, none of which will do anything to allay the lost credibility of Southwest's management,” wrote Elliott partner John Pike and portfolio manager Bobby Xu in a letter to the airline’s board.
The hedge fund said Southwest’s board is “profoundly out of touch” with shareholder sentiment and was pushing for the airline to appoint a new CEO, along wi
