Southwest Airlines is set to undergo significant changes as it revamps its board and prepares for the retirement of its chairman next year. The decision comes following pressure from hedge fund Elliott Investment Management, which has been advocating for improvements at the airline, including the removal of CEO Robert Jordan.
Southwest announced that six directors will be stepping down in November, with plans to appoint four new independent directors, potentially including candidates suggested by Elliott. The airline's stock experienced a 4% decline in morning trading on Tuesday in response to the news.
