Southwest Airlines Exec Chair and CEO Gary Kelly Buckles to Pressure from Activist Investor Elliot, Spurring Board Shakeup and Leadership Changes

Southwest Airlines announced that Executive Chairman and former CEO Gary Kelly will retire next year, following pressure from activist investor Elliott Investment Management. Kelly, who has been with the company for nearly four decades, stated that change is necessary. The firm holds a $2 billion stake in the airline and said the carrier is grappling with "stunning underperformance." Six Southwest board members will retire in November, with four new independent directors to be appointed, including up to three candidates proposed by Elliott.