What's happened
Elliott Investment Management has intensified its campaign against Southwest Airlines, calling for a special shareholder meeting to replace board members and the CEO. The hedge fund, which owns an 11% stake, criticizes the airline's performance and has launched a podcast to engage shareholders. Recent operational changes at Southwest aim to improve profitability.
Why it matters
What the papers say
According to Business Insider UK, Elliott's campaign is characterized by its novel approach, including the launch of a podcast to engage shareholders directly. The firm argues that without a thorough reconstitution of the board, Southwest's potential will remain unfulfilled. Meanwhile, the NY Post emphasizes the urgency of Elliott's actions, stating that the hedge fund believes recent changes at Southwest are insufficient for real improvement. This sentiment is echoed in the broader context of corporate governance, where accountability and performance are increasingly scrutinized by investors.
How we got here
Elliott Investment Management has been pushing for changes at Southwest Airlines since June, citing the airline's declining stock value and operational inefficiencies. The hedge fund's campaign includes a call for a shareholder vote on new board nominees scheduled for December 10, 2024.
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What is Elliott Investment Management's plan for Southwest Airlines?
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Amazon Web Services is a subsidiary of Amazon providing on-demand cloud computing platforms and APIs to individuals, companies, and governments, on a metered pay-as-you-go basis.
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Microsoft Corporation is an American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services.
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Southwest Airlines Co. is a major American airline headquartered in Dallas, Texas, and is the world's largest low-cost carrier.
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Google LLC is an American multinational technology company that specializes in Internet-related services and products, which include online advertising technologies, a search engine, cloud computing, software, and hardware.
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Elliott Management Corporation is an American investment management firm. It is also one of the largest activist funds in the world.
It is the management affiliate of American hedge funds Elliott Associates L.P. and Elliott International Limited. The Elli