UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
SCHEDULE
14A
(Rule
14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934
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| ☐ | Preliminary Proxy Statement |
| ☐ | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
| ☐ | Definitive Proxy Statement |
| ☐ | Definitive Additional Materials |
| ☒ | Soliciting Material Under § 240.14a-12 |
| SOUTHWEST AIRLINES CO. |
(Name of Registrant as Specified In Its Charter)
|
| |
Elliott Investment
Management L.P.
ELLIOTT ASSOCIATES,
L.P.
ELLIOTT INTERNATIONAL,
L.P.
THE LIVERPOOL
LIMITED PARTNERSHIP
Elliott Investment
Management GP LLC
Paul E. Singer
MICHAEL CAWLEY
DAVID CUSH
SARAH FEINBERG
JOSHUA GOTBAUM
DAVID GRISSEN
NANCY KILLEFER
ROBERT MILTON
GREGG SARETSKY
EASWARAN SUNDARAM
PATRICIA WATSON
|
(Name of Persons(s) Filing Proxy Statement, if other than the Registrant)
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Payment of Filing Fee (Check all boxes that apply):
| ☐ | Fee paid previously with preliminary materials |
| ☐ | Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11 |
Elliott Investment Management
L.P., together with the other participants named herein (collectively, “Elliott”), intend to file a proxy statement and accompanying
proxy card with the Securities and Exchange Commission to be used to solicit proxies with respect to the election of Elliott’s slate
of highly qualified director candidates and other proposals that may come before the next shareholder meeting of Southwest Airlines Co.,
a Texas corporation (the “Company”), whether an annual or special meeting of shareholders.
Item 1: On August 13, 2024,
Elliott issued the following press release:
Elliott
Management Announces Director Candidates for the Board of Southwest Airlines
Elliott Intends to Nominate Ten Independent, Highly
Qualified Candidates
Candidates Bring Best-in-Class Experience in Airlines,
Technology, the Consumer and Hospitality Sectors, Labor Relations and Regulatory Oversight
Elliott Takes Key Step Toward Implementing Urgent
Changes at Southwest
Full Materials Available at StrongerSouthwest.com
WEST PALM BEACH, FL
(August 13, 2024) — Elliott Investment Management L.P. (“Elliott”), which manages funds that together have an approximately
11% economic interest in Southwest Airlines, Inc. (NYSE: LUV) (“Southwest” or the “Company”), today announced
that it intends to nominate ten independent, highly qualified candidates (the “Candidates”) to the Company’s Board.
Elliott plans to move forward expeditiously to formally nominate the Candidates.
Elliott has previously
called for three steps to put Southwest on the path to restoring its industry-leading position: 1) reconstituting the Board; 2) installing
new leadership; and 3) conducting a comprehensive business review. Today’s announcement represents a key step toward implementing
the urgent changes needed at Southwest. The urgency of change is underscored by the substantial continued deterioration in Southwest’s
performance since Elliott initially published its materials on June 10 and the Board’s actions in response to further entrench itself
and resist change.
When nominated, these Candidates
would give shareholders a choice between the Company’s existing Board, which has delivered poor returns for shareholders and has
not held management accountable for Southwest’s unacceptable performance, or a new Board that brings relevant expertise, fresh thinking
and accountability.
These Candidates were selected
through a months-long global search for the best individuals with the optimal mix of backgrounds and expertise to address Southwest’s
current challenges and deliver on the Company’s potential. The final group of Candidates includes four former airline CEOs and Deputy
CEOs and six Candidates with complementary expertise in technology, hospitality, consumer-focused businesses, labor relations and regulatory
oversight, including experience leading organizational change in these areas.
The Candidates are as follows,
with more detailed biographies appended to this release.
| · | Michael Cawley, the former deputy CEO, COO and CFO of Ryanair |
| · | David Cush, the former CEO of Virgin America |
| · | Sarah Feinberg, a former senior official at the Department of Transportation and former head of
the Federal Railroad Administration |
| · | Hon. Josh Gotbaum, a longtime advisor to companies and labor groups and the former chapter 11 trustee
of Hawaiian Airlines |
| · | Dave Grissen, the former Group President of Marriott International |
| · | Nancy Killefer, a former McKinsey Senior Partner in the firm’s Consumer and Retailing Practice
and current Board member of Meta |
| · | Robert Milton, the former CEO of Air Canada and ACE Aviation Holdings and the former Chairman of
United Airlines |
| · | Gregg Saretsky, the former CEO of WestJet |
| · | Eash Sundaram, the former Chief Digital and Technology Officer of JetBlue |
| · | Patty Watson, the current EVP and Chief Information & Technology Officer at NCR Atleos and
a longtime technology executive |
If elected, Elliott is
confident that these Candidates will chart a brighter future for Southwest, provide the Board with much-needed expertise and relevant
industry experience and help restore the Company’s position as an industry-leading airline with best-in-class profitability.
The strong qualifications
of these Candidates stand in contrast to those of the current Board, which prior to Elliott’s June 10 letter lacked a single independent
director with airline experience, and which continues to lack relevant experience in other key areas necessary to drive Southwest’s
evolution.
The full biographies of
the Candidates follow:
Michael Cawley
Former Deputy CEO, COO and CFO of Ryanair
A longtime senior executive at Ryanair, Michael Cawley
has decades of experience at the world’s most successful low-cost carrier. Cawley has a broad range of expertise from his 17-year
executive career at Ryanair, having served as Deputy CEO, Chief Operating Officer, CFO and Commercial Director. During Cawley’s
tenure as an executive at Ryanair, the company grew from serving less than 3 million passengers to 82 million passengers annually and
delivered a more than 2,700% total shareholder return. Cawley recently retired from the Board of Ryanair, where he guided the company
to achieve an additional 155% total shareholder return after his tenure as an executive. Cawley played an integral role in creating and
growing one of the world’s most successful airlines with a cost-focused culture that serves as a benchmark for low-cost carriers
globally. Cawley’s extensive experience in the airline industry, developed over nearly three decades of leadership at Ryanair, would
make him a valuable addition to the Southwest Board as it seeks to improve performance.
David Cush
Former CEO of Virgin America
David Cush brings 30 years of aviation experience,
including nine years as CEO of Virgin America and two decades of experience at American Airlines in various operational, sales and network
planning roles. Under Cush’s leadership, Virgin America delivered an exceptional customer experience that resulted in the company
winning “Best U.S. Airline” in Conde Nast Traveler’s readers’ choice awards for nine consecutive years
and the top position in Consumer Reports’ airline customer satisfaction rankings. Cush joined Virgin America as CEO just
after the airline’s inaugural flight, and led the airline through the turmoil of the financial crisis and a subsequent period of
rapid growth. Cush led Virgin America to realize its first annual profit, oversaw its successful initial public offering and ultimately
negotiated the airline’s acquisition by Alaska Airlines. Cush’s leadership delivered a 148% total shareholder return over
Virgin America’s two years as a publicly traded company. After the sale of Virgin America, Cush served as interim CEO and subsequently
CEO of Service King Paint & Body, a Blackstone and Carlyle-owned collision repair business. As a former airline CEO with a demonstrated
track record of fostering a strong employee culture and best-in-class customer service, Cush would bring deep experience to Southwest’s
effort to build upon the Company’s core cultural strengths while evolving and modernizing the strategy.
Sarah Feinberg
Former Transportation
Regulator and Administrator of the Federal Railroad Administration
Sarah Feinberg is an experienced
transportation regulator who formerly served as Administrator of the Federal Railroad Administration, Chief of Staff to the U.S. Secretary
of Transportation and Interim President of the New York City Transit Authority. As Administrator of the Federal Railroad Administration,
the railroad safety regulator within the Department of Transportation, Feinberg focused on enhancing the safety of the rail network after
a series of accidents. During her tenure, Feinberg became known for her aggressive enforcement of safety regulations and promotion of
investments to improve the safety of the rail system. As Chief of Staff to the U.S. Secretary of Transportation, Feinberg oversaw and
advised on a broad range of initiatives across the aviation and broader transportation sector. Feinberg would bring experience crucial
to the Southwest Board’s foremost mission of ensuring the safety of the Company’s employees and customers.
Hon. Joshua “Josh” Gotbaum
Seasoned Advisor to Companies and Labor Groups
and Former Hawaiian Airlines Trustee
Josh Gotbaum has decades of experience as an advisor
to both airline management teams and labor. As an investment banker at Lazard, Gotbaum advised in transactions involving both US carriers
and foreign flag carriers. At Hawaiian Airlines, Gotbaum led and managed the airline’s successful emergence from chapter 11 with
Hawaiian achieving both the highest operating margin and best on-time performance of the U.S. carriers, which permitted a full recovery
for Hawaiian’s creditors, new employee contracts with pay and benefits comparable to or better than peers and a nearly 600% total
return for shareholders over his tenure. He went on to serve as the Director of the Pension Benefit Guarantee Corporation, where he helped
American Airlines preserve its pensions. In prior US government service, Gotbaum had presidential appointments in the White House Office
of Management & Budget, the Department of Treasury and the Department of Defense. As an Operating Partner at Blue Wolf Capital, he
was involved in several successful business transformations. In 2023, Gotbaum was nominated to serve on the Board of Starbucks by a coalition
of labor unions as part of a successful effort to show the connection between good union relationships and shareholder value. Gotbaum
previously served on the Boards of PulteGroup, TD Bank, N.A., Thornburg Investment Management and Safety-Kleen Systems. As he did at Hawaiian
Airlines, Gotbaum intends to work to ensure the Company’s unique employee culture is preserved and its unions are engaged as Southwest
implements strategic and operational improvements.
David “Dave”
Grissen
Former Group President of Marriott International
Dave Grissen is the former Group President of Marriott
International. As Group President, Grissen led all functions for Marriott’s brands in the Americas and for the Ritz Carlton and
EDITION brands globally, including strategy, revenue management, sales and marketing, operations, food and beverage, technology, development
and human resources. Grissen managed hotels representing approximately two-thirds of Marriott’s fee revenue, a workforce of 160,000
people and a successful growth strategy that resulted in Marriott’s Americas organization nearly doubling from 2,928 hotels to 5,640
hotels plus 1,800 pipeline hotels under his leadership. Grissen’s extensive experience leading a large hospitality franchise, growing
a storied brand and delivering top-tier results would be valuable to the Southwest Board. Grissen also currently serves as the Chairman
of Regis and is on the Board of Chatham Lodging Trust.
Nancy Killefer
Former Senior Partner in the Consumer and Retailing
Practice at McKinsey
Nancy Killefer was a longtime Senior Partner and member
of the governing Board at McKinsey and served in multiple high-ranking government roles throughout her career. At McKinsey, Killefer was
a Senior Partner in the firm’s Consumer and Retailing Practice, where she advised companies on marketing, strategy, organizational
effectiveness and systems. She also founded and led the firm’s Public Sector Practice and was the Senior Partner in charge of the
DC office. In the public sector, she served as Chief Financial Officer, Chief Operating Officer and Assistant Secretary of Management
at the Department of the Treasury, where she led the reform and modernization of the IRS, and later as chair of the Internal Revenue Service
Oversight Board. Killefer has served on the Boards of nine public companies, including Meta Platforms and Cardinal Health, currently.
Killefer’s experience advising consumer-facing brands through transformative changes will be valuable to the Southwest Board as
the Company seeks to enhance its value proposition for customers and better understand and deliver on customer expectations.
Robert Milton
Former CEO of Air Canada and ACE Aviation Holdings
and Former Chairman of United Airlines
Robert Milton brings more than 40 years of experience
in the aviation industry, including a total of 13 years as CEO of Air Canada and its holding company ACE Aviation and two years as Chairman
of United Airlines. After taking over as CEO of Air Canada amid a challenging operating environment and struggling financial performance,
Milton successfully repositioned the airline for long-term success and delivered substantial value creation. As Chairman of United Airlines,
Milton oversaw the initiation of the airline’s repositioning and turnaround. Milton’s deep airline turnaround experience and
track record of shareholder value creation in the airline industry would enable him to provide valuable guidance to a new management team
as it develops a strategy to restore Southwest’s industry-leading position. Milton is a current director of Air Lease Corporation
and has previously served as a director at US Airways, AirAsia, TAP Air Portugal, Cathay Pacific Airways and Breeze Airways.
Gregg Saretsky
Former CEO of WestJet
Gregg Saretsky brings significant leadership experience
and industry knowledge with a nearly 40-year career in aviation, including having served as CEO of WestJet for eight years. At WestJet,
Saretsky led the evolution of the airline from providing a one-dimensional product offering to having a modern commercial strategy, generating
a total shareholder return of more than 100% during his tenure as CEO. Prior to WestJet, Saretsky served in a number of senior-level commercial
and operational roles at Alaska Airlines, including Executive Vice President of Flight Operations & Marketing. Saretsky’s extensive
industry knowledge and learnings from driving transformational change would be valuable to the Southwest Board in guiding and overseeing
strategic changes at the Company. Saretsky is also a current director of IndiGo and RECARO Aircraft Seating.
Easwaran “Eash” Sundaram
Former Chief Digital & Technology Officer of
JetBlue
Eash Sundaram brings valuable experience from a successful
career as a technology executive, including nine years as Executive Vice President and Chief Digital & Technology Officer at JetBlue
Airways. Under Sundaram’s leadership, JetBlue made substantial updates to its technology infrastructure which transformed the airline’s
technical capabilities. This transformation unlocked opportunities across the airline’s functional areas, including improvements
to its commercial strategy, networking planning and operations. Sundaram also founded JetBlue Technology Ventures and served as its oversight
officer. Sundaram’s experience in driving transformational change in airline technology infrastructure and implementing technology
solutions to enable modern commercial strategies would make his perspective particularly valuable to the Southwest Board. Prior to joining
JetBlue, Sundaram was the Chief Information Officer of Pall Corporation. Sundaram currently serves on the Boards of Wesco International
and SolarWinds.
Patricia “Patty” Watson
CIO and CTO of NCR Atleos
Patty Watson is an experienced
technology executive with a track record of developing modernization plans and overseeing IT transformations at large, complex financial
services and transportation/logistics companies. Watson is currently Executive Vice President and Chief Information & Technology Officer
at NCR Atleos. Over the course of her career, she has also served as Executive Vice President and Chief Information Officer of NCR, Total
Systems Services and The Brink’s Company, the President of Cloud Collaboration at Intrado and in various senior technology roles
at Bank of America. Watson is a Director at Rockwell Automation, and previously served on the Boards of USAA Federal Savings Bank and
Texas Capital Bancshares. Prior to her corporate career, Watson served in the U.S. Air Force as a contracting and acquisition officer,
delivering aircraft technology systems, and as a director of operations. Watson’s extensive experience in developing and executing
on complex IT transformations to enable business strategy and growth will be valuable to the reconstituted Board’s task of modernizing
Southwest’s outdated technology infrastructure. As the spouse of a captain who has flown for Southwest for 24 years, Watson recognizes
the importance of preserving Southwest’s culture while modernizing the Company’s operations and strategy to facilitate its
long-term financial success and provide a rewarding career opportunity for its employees.
CERTAIN INFORMATION CONCERNING THE PARTICIPANTS
Elliott Investment Management L.P., together with
the other participants named herein (collectively, “Elliott”), intend to file a proxy statement and accompanying proxy card
with the Securities and Exchange Commission (“SEC”) to be used to solicit proxies with respect to the election of Elliott’s
slate of highly qualified director candidates and other proposals that may come before the next shareholder meeting of Southwest Airlines
Co., a Texas corporation (the “Company”), whether an annual or special meeting of shareholders.
THE PARTICIPANTS STRONGLY ADVISE ALL SHAREHOLDERS
OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS, INCLUDING A PROXY CARD, AS THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC’S WEB SITE AT HTTP://WWW.SEC.GOV.
IN ADDITION, THE PARTICIPANTS WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST. REQUESTS FOR COPIES
SHOULD BE DIRECTED TO THE PARTICIPANTS’ PROXY SOLICITOR.
The participants in the solicitation are anticipated
to be Elliott Investment Management L.P. (“EIM”), Elliott Associates, L.P. (“Elliott Associates”), Elliott International,
L.P. (“Elliott International”), The Liverpool Limited Partnership (“Liverpool”), Elliott Investment Management
GP LLC (“EIM GP”), Paul E. Singer (“Singer”), Michael Cawley, David Cush, Sarah Feinberg, Joshua Gotbaum, David
Grissen, Nancy Killefer, Robert Milton, Gregg Saretsky, Easwaran Sundaram and Patricia Watson.
As of the date hereof, Elliott has combined economic
exposure in the Company of approximately 11.0% of the shares of its Common Stock, $1.00 par value per share (the “Common Stock”),
outstanding. As of the date hereof, EIM, the investment manager of Elliott Associates and Elliott International (together, the “Elliott
Funds”) with respect to the shares of Common Stock held by the Elliott Funds and/or their respective subsidiaries, beneficially
owns 48,948,500 shares of Common Stock. Additionally, as of the date hereof, the Elliott Funds are party to notional principal amount
derivative agreements in the form of cash settled swaps with respect to an aggregate of 16,976,000 shares of Common Stock (the “Derivative
Agreements”). Elliott Associates, Elliott International and Liverpool are the direct holders of the shares of Common Stock beneficially
owned by EIM, and are party to the Derivative Agreements. Liverpool is a wholly-owned subsidiary of Elliott Associates. EIM GP is the
sole general partner of EIM. Singer is the sole managing member of EIM GP. As of the date hereof, Mr. Cawley holds 19,765 shares of Common
Stock, Mr. Cush holds 10,000 shares of Common Stock, Ms. Feinberg beneficially owns 3,068 shares of Common Stock, including 2,800 shares
of Common Stock held directly and 268 shares of Common Stock held by her domestic partner, Mr. Gotbaum holds 19,162 shares of Common Stock,
Mr. Milton holds 1,953 shares of Common Stock, Mr. Saretsky holds 4,000 shares of Common Stock, Mr. Sundaram holds 2,000 shares of Common
Stock, and Ms. Watson beneficially owns 5,086 shares of Common Stock, including 3,964 shares of Common Stock held directly and 1,122 shares
of Common Stock held by her spouse.
About Elliott
Elliott
Investment Management L.P. (together with its affiliates, “Elliott”) manages approximately $69.7 billion of assets as of June
30, 2024. Founded in 1977, it is one of the oldest funds under continuous management. The Elliott funds’ investors include pension
plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the
firm.
Media Contact:
Casey Friedman
Elliott Investment Management L.P.
(212) 478-1780
cFriedman@elliottmgmt.com
Item 2: Elliott has set
up the following Stronger Southwest social media profiles:
Facebook
Instagram
LinkedIn
X
Item 3: On August 14,
2024, Elliott sent the following pre-market email to shareholders of the Company:
Item 4: Elliott has posted
the following materials to www.strongersouthwest.com, which was launched to communicate with the Company’s shareholders, including
the materials set forth on Exhibit 1 attached hereto and incorporated herein by reference:
Southwest Airlines (NYSE:LUV)
Gráfica de Acción Histórica
De Jul 2024 a Ago 2024
Southwest Airlines (NYSE:LUV)
Gráfica de Acción Histórica
De Ago 2023 a Ago 2024
