[Update, Aug. 14] Southwest in a statement posted to its website said that Elliott had "dismissed" its efforts to "engage constructively," and said that before Elliott made its board announcement, the investment firm had agreed to meet with the carrier in early September "to discuss a collaborative resolution, including continuing significant Board refreshment and other governance enhancements."
Southwest in the statement said that "The Southwest Airlines Board remains confident that the airline has the right Leadership Team in place to evolve the business and to lead Southwest Airlines forward."
[Original report, Aug. 13] Elliott Investment Management late Tuesday publicly identified 10 would-be nominees to Southwest Airlines' board of directors, escalating its demand for changes to the carrier's senior management and coming closer to consummating the proxy battle it has threatened.
Elliott had called for the ouster of Southwest CEO Bob Jordan since June, when the investment firm revealed a $1.9 billion stake in the carrier, representing about an 11 percent economic interest, and threatened the carrier with a proxy battle. Jordan has vowed to stay on.
Elliott in a statement said it plans to "move forward expeditiously to formally nominate" the would-be board candidates, which include former Virgin America CEO and former American Airlines SVP of global sales David Cush, former Marriott International group president for the Americas Dave Grissen, former Air Canada CEO Robert Milton and former WestJet president and CEO Gregg Saretsky.
The other six nominees are:
- Michael Cawley, former deputy CEO, COO and CFO of Ryanair
- Sarah Feinberg, former chief of staff to U.S. Department of Transportation Secretary Anthony Foxx
- Josh Gotbaum, the former chapter 11 trustee of Hawaiian Airlines
- Nancy Killefer, former Obama administration chief performance officer and McKinsey & Co. director
- Eash Sundaram, former JetBlue chief digital and technology officer
- Patty Watson, NCR Atleos EVP and chief information and technology officer
Elliott said its nominees were selected after a "months-long global search for the best individuals with the optimal mix of backgrounds and expertise to address Southwest’s current challenges and deliver on the Company’s potential" and said Southwest's current 15-member board "has delivered poor returns for shareholders and has not held management accountable for Southwest’s unacceptable performance."
Southwest did not immediately return a request for comment.
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