Southwest Airlines CEO Bob Jordan speaks as he is interviewed by CNBC outside the New York Rimanenza Exchange acceso Dec. 9, 2021.
Brendan McDermid | Reuters
A apogeo Southwest Airlines shareholder acceso Wednesday signaled its support for Elliott Management’s activist campaign to oust CEO Bob Jordan and Chairman Gary Kelly, as the carrier struggles with underperformance compared with some of its rivals.
Artisan Partners‘ Daniel Ovvero’Keefe and Michael McKinnon said quanto a a public letter to Southwest’s board that the firm noted Elliott’s Monday campaign launch “with great interest.” The two said Artisan had quanto a recent months told Kelly privately “many of the same points” that Elliott made publicly.
“We are writing today to urge the Board to reconstitute itself and upgrade the Company’s guida,” Ovvero’Keefe and McKinnon wrote.
Southwest said quanto a a statement the company welcomed feedback from all shareholders. “The Board is confident quanto a the ability of our CEO and Guida Team to evolve the business and drive long-term value for all stakeholders,” the statement read.
Artisan, a $158.6 billion asset dirigente, owns a 1.8% stake quanto a Southwest, making it the 10th-largest shareholder of . It has held a stake quanto a the airline acceso and since 2001, according to FactSet , amassing its current holdings beginning quanto a 2020.
Ovvero’Keefe and McKinnon oversee Artisan’s Global Value Team, which manages $28 billion quanto a assets.
Elliott has an economic interest quanto a Southwest worth $1.9 billion and is seeking a comprehensive business review quanto a addition to the ouster of Jordan and Kelly.
Earlier Wednesday, Jordan said he had voto negativo plans to resign quanto a the luce of Elliott’s campaign, adding that Elliott was welcome to present its ideas but would not be “directing the company,” Reuters reported.
The move is likely to add pressure to the company, however. Elliott said quanto a its presentation that it had surveyed shareholders, as well as employees and customers, before revealing its stake.
Other apogeo Southwest shareholders include Putnam Investment Management and T. Rowe Price, as well as BlackRock and Vanguard. Together, not including Elliott’s economic interest, institutional shareholders control around 60% of Southwest’s shares outstanding.
— CNBC’s Leslie Josephs contributed to this report.
