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Update 9:05 PM: Elliott’s confirmation adds.
Activist firm Elliott Investment Management is preparing to launch a proxy battle in Southwest Airlines (NYSE: LUV).
The prominent activist fund plans to nominate 10 candidates for the position of director of the airline’s 15-person board, according to a statement from Elliott is expected to call a special meeting to allow shareholders to vote on the candidates.
The list of nominees includes four former airline CEOs, two executive vice presidents and six candidates with experience in technology, hospitality, consumer-focused businesses, labour relations and regulatory oversight. The candidates include Michael Cowley, former executive vice president, chief operating officer and chief financial officer of Ryanair; David Koch, former CEO of Virgin America; Robert Milton, former CEO of Air Canada; and Greg Saretsky, former CEO of WestJet.
“When nominated, these candidates will give shareholders a choice between the company’s current board, which has delivered poor shareholder returns and failed to hold management accountable for Southwest’s unacceptable performance, or a new board that brings relevant experience, fresh thinking and accountability,” Elliott said in the statement.
The news comes as Elliott confirmed in June that it owns a $2 billion stake in Southwest (LUV) and activists have urged the airline to conduct a business review and believe the airline’s stock could reach $49 a share. Elliott has called for new leadership, including CEO Bob Jordan and Chairman Gary Kelly.
Elliott still wants to replace Jordan and Kelly, though it is now focused on reshaping the board, according to a report Tuesday by The Wall Street Journal, which first reported the agency battle.
Late last month, Elliott Management said Southwest Airlines (LUV)’s “revenue-boosting initiatives” that would eliminate open seating were “too little, too late,” coming more than a decade late and after a 50% drop in its stock price.