Southwest Airlines Announces Board Shakeup, Retirements

Southwest Airlines announced major changes on its board of directors on Tuesday with approaching retirements, new appointments, and restructuring of executive committees.
After eliminating its former executive committee structure, the company will set up a finance committee overseen by the new leadership.
The company said it maintains its support for CEO Bob Jordan and intends to continue to engage with Elliot Investment Management, a company that has been advocating for major shakeups at Southwest, including calling for Kelly’s resignation.
“We are taking swift and bold action, and we will overcome these challenges, too,” he said. “The Southwest leadership team, with oversight from the Board, has been pursuing meaningful, tactical changes to the route network; revenue management techniques; and marketing, merchandising, and distribution methods.”
Kelly became board chair in 2008 after beginning with the company as an air traffic controller in 1986. He said the company’s value has increased 60-fold over the past 47 years despite economic disruptions such as war, recession, 9/11, and oil price spikes.
He praised Jordan’s leadership, saying he has a proven track record and “has what it takes to lead Southwest through a significant transformation and usher in a new era of profitable growth, innovation, and industry leadership.”
Board members David Biegler, Veronica Biggins, Thomas Gilligan, William Cunningham, Jill Soltau, and former U.S. Sen. Roy Blunt will also be retiring.
In his letter, Kelly said there’s wisdom in knowing what can and can’t be changed.
“We know we will need to continually bring in new talent—in leadership and on the Board,” he said. “We know we will need to continue to invest and transform. All that is underway, while carefully evaluating the choices and executing with excellence the committed plans. Maintaining the core, the essence of Southwest while transforming the business is not mutually exclusive.”