Southwest leadership stands firm amid activist pressure
As reported by Reuters, Southwest Airlines CEO, Bob Jordan, said he has no plans to resign amidst pressure from activist investor Elliott Investment Management. The airline is facing calls for a major leadership overhaul and potential changes to its business model (free checked bags, cattle-call seating, excellent customer service). Despite this, Jordan has asserted that Southwest is ready to adapt to changing customer demands and is open to considering Elliott’s feedback.
This statement follows Elliott's recent acquisition of a nearly $2 billion stake in Southwest, making it one of the airline's largest investors. The firm has been vocal in calling for Jordan and Chairman Gary Kelly to step down due to Southwest's recent underperformance.
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