Southwest Airlines is caving further to pressure from minority stakeholder Elliott Investment Management, which has been granted permission to own a greater share of the company’s outstanding stock.
The Dallas-based carrier disclosed in a 19 February filing with the US Securities and Exchange Commission that it has amended an existing agreement with Elliott, “increasing the maximum aggregate economic exposure that the Elliott parties may acquire from 14.9% to 19.9%” of Southwest’s shares.
The agreement’s current terms will expire after Southwest’s investor day in 2026.
It is the latest concession Southwest has made to Elliott, which has used its minority stake to succesfully push for an overhaul of the company’s board of directors, the departure of executive chairman and former chief executive Gary Kelly and sweeping strategic and operational changes.
The turnover among the company’s leadership team will continue with the retirement of longtime chief financial officer Tammy Romo on 1 April.
Southwest recently named former Breeze Airways president Tom Doxey as Romo’s replacement.
In an especially dramatic move, Southwest recently axed 15% of its corporate positions – the storied company’s first-ever layoffs.
Southwest also disclosed on 19 Februrary the planned departure of chief transformation officer Ryan Green. It did not elaborate on the circumstances surrounding Green’s decision to step down effective 1 April.