Up to date at 9:05 p.m.: Added Elliot affirmation.
Activist Elliott Administration is getting ready to launch proxy battle over Southwest Airways (NYSE:LUV).
The distinguished activist fund plans to appoint 10 director candidates for the airline’s 15-person board, in keeping with an announcement Elliott on Tuesday. Elliott expects to name a particular assembly to permit holders to vote on nominees.
Nominees embrace 4 former airline CEOs and deputy CEOs, in addition to six candidates with experience in expertise, hospitality, consumer-focused companies, labor relations and regulatory oversight. Candidates embrace Michael Cawley, former deputy CEO, COO and CFO of Ryanair, David Cush, former CEO of Virgin America, former CEO of Air Canada CEO Robert Milton and former WestJet CEO Gregg Saretsky.
“As soon as nominated, these candidates will depart shareholders to decide on between the corporate’s current board, which has delivered poor returns to shareholders and a brand new board that brings related experience, recent considering and accountability. Maintain administration accountable for Southwest’s unacceptable efficiency.
The information comes as Elliott confirmed in June its $2 billion stake in Southwest Airways ( LUV ), with the activist urging the airline to conduct a enterprise overview and trusting the airline The corporate’s inventory value might attain $49 per share. Elliott referred to as for brand new management, together with CEO Bob Jordan and Chairman Gary Kelly.
Elliott nonetheless desires Jordan and Kelly to get replaced, however is now targeted on restructuring the board, in keeping with a Tuesday report from The Wall Road Journal, which first reported information of the proxy battle.
Late final month, Elliott Administration mentioned Southwest Airways ( LUV ) was “too little, too late” to desert its “revenue-enhancing initiatives” to open seats, as they have been greater than a decade late and got here at a time when Carried out when passenger visitors dropped by 50%.