Southwest Airlines is set to undergo a significant transformation in its board leadership following the resolution of a prolonged dispute with activist investor Elliot Investment Management. In an announcement made on October 24, 2024, Southwest revealed plans to appoint six new directors, with five of them proposed by Elliot earlier in the month. As part of the agreement, Executive Chairman Gary Kelly will expedite his retirement, stepping down from his role on November 1, 2024, while retaining the title of Chairman Emeritus.

Among the new directors supported by Elliot are notable industry figures such as David Cush, the former CEO of Virgin America, Gregg Saretsky, the former CEO of WestJet, and Dave Grissen, the former Group President of Marriott International. Sarah Feinberg, Patricia Watson, and Pierre Breber, the former CFO of Chevron, will also join the board, alongside the appointment of a new independent chairperson.

Expressing satisfaction with the collaborative resolution, Kelly remarked in a statement, “I am confident this Board will continue to hold the leadership team accountable for executing its transformational plan and delivering financial performance.” He added that "Southwest’s best days lie ahead," under the guidance of Bob Jordan and the oversight of the revamped Board.

The agreement marred Elliott's initial demands for the removal of eight Southwest directors and the appointment of its own candidates. However, with this new agreement, the investor and the airline now look towards a shared goal of enhancing business performance and creating long-term shareholder value.

In response to the agreement, Elliot’s representatives, John Pike and Bobby Xu, expressed optimism about the Board's revitalization, stating, “We believe the strategic changes Southwest has announced...will position the Company to enhance business performance and drive operational execution.” The Southwest board will see its size reduced to 13 members beginning at the 2025 Annual Shareholder Meeting.

Throughout the process, Southwest emphasized its commitment to maintaining strong governance and its strategic vision, countering Elliot’s claims of broken promises and the need for immediate and radical change within the company's leadership structure. The airline's future now appears to be charted towards fresh opportunities for growth and success under the stewardship of the reconstituted Board.