Artisan Partners Global Value Team Statement Regarding Director Candidates for the Board of Southwest Airlines
15 Agosto 2024 - 4:49PM
The following statement is issued by the Global Value Team at
Artisan Partners Limited Partnership, whose discretionary
investment management clients collectively hold more than 10.8
million shares of Southwest Airlines Co. (NYSE: LUV) ("Southwest"
or the "Company"), or roughly 1.8% of the Company's outstanding
shares:
We have reviewed the biographies of
the director nominees proposed by Elliott Investment Management, as
detailed in Elliott's press release on August 13, 2024 (the
"Elliott nominees"). We believe the Elliott nominees would bring a
wealth of experience to the Southwest board. These nominees would
add several capabilities the board is currently lacking, including
a number of independent directors with former airline executive
experience from across a range of business models and
geographies.
The current Southwest board is simply
not a credible alternative to this slate of directors. This is not
a speculative point. The current board has overseen a management
team that has delivered continually deteriorating financial
performance over the short, medium and long term. The only argument
against the Elliott nominees and in favor of the existing structure
is self-preservation. Southwest Airlines does not exist to further
the career interests of its board and management team, but rather
the long-term interests of the owners, employees and customers,
which we believe are fully aligned with a change in direction.
In all our decades of investing, we
cannot recall a proposed board slate so eminently qualified for the
task at hand. We believe that with just a moment of
self-reflection, the current board members will agree with us on
this point.
We urge the board to work with
Elliott to immediately bring on all or substantially all of the
proposed nominees who can then chart a new course with a new
Chairman and CEO. If it will not, we will vote for the Elliott
nominees should an extraordinary shareholder meeting be called.
Given the Company’s poor performance
under current management, we believe the outcome here is largely
determined. The shareholders want and deserve new leadership.
Standing in the way of this transition will only lead to further
cost and distraction at the expense of employees, customers and
owners.
Enough is enough. Do the right
thing.
Press InquiriesEileen
Kwei800.399.1770eileen.kwei@artisanpartners.com
Southwest Airlines (NYSE:LUV)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
Southwest Airlines (NYSE:LUV)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024