
Southwest Airlines
FGS supported the board of Southwest Airlines as they weathered a highly aggressive public campaign by Elliott Investment Management. Elliott’s campaign called for major governance changes and a strategic overhaul while criticising leadership for failing to modernise and adapt to evolving trends. Elliott pushed to oust longtime CEO Bob Jordan and called for the replacement of 10 of Southwest’s 15 board members, including Executive Chairman Gary Kelly.
FGS partnered with Southwest to develop their transformation initiatives, which were instrumental in re-establishing stakeholder confidence in the leadership team and its ability to execute the operational plan. Southwest ultimately reached a collaborative agreement with Elliott, which withdrew its request for a special meeting of shareholders and entered into cooperation and information sharing agreements with Southwest. The CEO and remained in place and the reconstituted board retained existing board members in leadership roles including the Chair and majority of committees chair. The strategy avoided a prolonged proxy fight and allowed for a controlled and recharged path forward.