Southwest Airlines has said directors David Cush and Gregg Saretsky will be stepping down from the board on February 23.
Both Cush and Saretsky were appointed to Southwest's board by recommendation of Elliott Investment Management as part of a cooperation agreement. Sarah Feinberg, David Grissen, and Patricia Watson were also appointed to the board, backed by Elliott.
The activist investor and Southwest had had a contentious relationship prior to the agreement, with the investor gaining an approximate 11% stake in the airline in October 2024. As a result, it had aimed to call a special meeting, with the investor pushing for leadership change in the airline.
The investor had planned to nominate 10 members to Southwest's board of 15, before nominating eight members after an agreement was reached with Southwest. The five Elliott-backed board members were selected and avoided a potential board battle, with the investor withdrawing its request for a special meeting.
Southwest later reduced its board from 15 members to 13.
In mid-December last year, Elliott trimmed its stake in Southwest down to 9.9% — below the 10% threshold required to call a special meeting.
Elliott said in the filing that it reduced its economic exposure for portfolio management purposes, but intends to remain significant shareholders of Southwest, where it has “confidence” in the airline's future profitability.
“Southwest's execution of ongoing strategic initiatives will translate to greater profitability, accretive capital-allocation opportunities and shareholder value creation,” said Elliott.
Southwest said that with Cush and Saretsky's departure, the board will remain at 11 members.