Southwest’s New Director Gangwal Acquires $100M in Stock, Calls for Stability in Leadership

Investing.com – Rakesh Gangwal, a board member of Southwest Airlines, recently made headlines by purchasing over $100 million in company stock. Gangwal, who was appointed to the board amid pressure from activist investor Elliott Investment Management, acquired 3.6 million shares of Southwest between September 30 and October 1, as disclosed in Securities and Exchange Commission filings.

The shares were purchased at prices ranging from $29 to $30 each, coinciding with the opening of the company’s trading window for insiders, allowing directors and executives to engage in stock transactions.

Gangwal joined Southwest’s board in July, following Elliott Investment Management’s advocacy for changes in leadership and strategy aimed at enhancing the airline’s financial performance. In response to Elliott’s pressures, Southwest has announced several significant changes, including a restructuring of its board.

Last month, the airline disclosed that executive chairman Gary Kelly would be stepping down, along with the retirement of six other board members. Despite these notable shifts, Elliott continues to push for additional changes, notably calling for the removal of CEO Bob Jordan. Recently, Elliott indicated its intention to seek a special shareholder meeting to advocate for further leadership adjustments.

In an interview, Gangwal expressed concerns about destabilizing the leadership at Southwest, emphasizing that additional changes would likely be “counterproductive” and could negatively impact shareholders. He insisted that further alterations to the board or executive team beyond those already implemented would not serve the best interests of shareholders.