Southwest Airlines (LUV.US) appoints industry veteran Gangwal as board chairman
1min read Southwest Airlines (LUV.US) on Monday appointed Rakesh Gangwal, a veteran of the airline industry, as its independent chairman of the board, the company said in a statement. Gangwal, a co-founder of InterGlobe Aviation, the parent of India's largest airline, Indigo, was brought onto the board in July under pressure from activist investor Elliott Management.
Last month, Southwest Airlines made a larger concession at the board level to resolve its boardroom dispute with Elliott, allowing CEO Bob Jordan to stay in his role. Jordan had been under close scrutiny from Elliott, which initially demanded Jordan and Chairman Gary Kelly be replaced.
Southwest Airlines last month announced it had reached an agreement with Elliott to appoint new board members and avoid a proxy fight. Under the deal, Kelly will retire early, and Jordan will continue as CEO.
According to the personnel changes announced last month, Pierre Breber, David Cush, Sarah Feinberg, Dave Grissen, Gregg Saretsky and Patricia Watson will join the Southwest Airlines board on November 1. Kelly will also retire early and serve as honorary chairman. Kelly had planned to retire in 2025.
Elliott also agreed to a standstill and information sharing agreement with Southwest Airlines. The activist investor withdrew its request to call a special shareholders meeting on December 10, which would have required it to hold more than 10% of the airline's shares.