Investment firm Artisan Partners on Wednesday urged Southwest Airlines “to reconstitute itself” and to “upgrade the company’s leadership,” in a letter sent to the carrier’s board of directors and included in a press release, adding “this process needs to commence immediately.”
Artisan Partners clients collectively hold more than 10.8 million Southwest shares, about a 1.8 percent stake according to the letter. The company’s letter follows by two days Elliott Investment Management’s call for a new CEO and board chairman at Southwest. Elliott recently acquired about $1.9 billion worth of Southwest stock.
“We have made many of the same points [as Elliott] to the company’s executive chairman over the past several months,” Artisan Partners wrote.
Earlier on Wednesday, Southwest CEO Bob Jordan said to reporters after a Politico event on the state of the airline industry that “I have no plans to resign,” according to the Associated Press, adding that Southwest would treat Elliott “like any other investor.”
Southwest in an emailed statement to BTN said: “Southwest is focused on building on its strong heritage of innovation and change, and we welcome feedback from all Shareholders. The Board is comprised of directors with complementary skills and expertise and includes seven new directors appointed during the past three years. The Board is confident in the ability of our CEO and Leadership Team to evolve the business and drive long-term value for all stakeholders.”
