Southwest Airlines to Revamp Board Amid Hedge Fund Pressure

Southwest Airlines plans to overhaul its board with six directors stepping down and four new ones being appointed. The changes come after a meeting with hedge fund Elliott Investment Management, which has called for leadership changes to improve financial performance. CEO Robert Jordan will remain in position.

Southwest Airlines has announced a significant restructuring of its board, with six directors set to depart in November. The airline will appoint four new directors, potentially including candidates suggested by hedge fund Elliott Investment Management.

Elliott, led by billionaire investor Paul Singer, has recently accumulated a 10% stake in Southwest Airlines. The fund has been pushing for leadership changes, including the removal of CEO Robert Jordan, to enhance the airline's financial performance and boost its stock price.

Despite these pressures, Southwest Airlines have confirmed that Robert Jordan will remain in his role as CEO. The airline's shares saw a slight increase in early trading on Tuesday following the announcement.

(With inputs from agencies.)