Activist investor Elliott Investment Management is taking the fight to the Southwest Airlines boardroom.
Elliott wants to implement a new strategy for the company which is says will help boost profits and shareholder value.
To do this it has proposed 10 new directors.
The hedge fund says it plans to nominate them and called for a special meeting.
The current Southwest board is made up of 15 directors.
“These candidates would give shareholders a choice between the company’s existing board, which has delivered poor returns for shareholders or a new board that brings relevant expertise, and accountability,” Elliott said in a statement.
Elliott has a $1.9 billion stake in Southwest but this is below the minimum threshold to call a special meeting.
The board can agree to hold the meeting or Elliott could team up with another investor to meet the 10% shareholder threshold to force through the meeting.
Elliott currently holds about 8.2%.
Elliott wants to see CEO Bob Jordan and chairman Gary Kelly step down and for the airline to conduct a full business review.
The hedge fund’s list of board member candidates is packed with previous airline experience.
It includes Michael Cawley, former deputy CEO of Ryanair, David Cush, ex CEO of Virgin America and Robert Milton, former CEO of Air Canada.
Milton is also a former chairman of United Airlines.
