Southwest Airlines names Rakesh Gangwal as board chair following Gary Kelly's retirement
DALLAS – Southwest Airlines has named Rakesh Gangwal as the independent chair of the board of directors.
Gangwal, an airline executive and entrepreneur, has been a member of the Southwest Airlines board of directors since July 8.
Previously, he served on the boards of US Airways Group, CarMax, Office Depot, OfficeMax and PetSmart.
"We are embarking on the next era of change at Southwest as we build upon its many successes and storied past," Gangwal said. "Our critical priority as a newly constituted Board is to come together to work closely with Bob Jordan and the rest of the management team to return the carrier to superior financial performance."
On Oct. 24, the Dallas-based company announced the six new members of the board, the same day it announced former Executive Chairman Gary Kelly was accelerating his retirement, which went into effect on Nov. 1.
The new directors include David Cush, Sarah Feinberg, Dave Grissen, Gregg Saretsky, Patricia Watson and Pierre Breber. Their appointments also went into effect on Nov. 1.
Kelly previously planned to retire next year following pressure from the hedge fund Elliott Investment Management, which has acquired an 11% stake in the airline and pushed for changes to enhance its financial performance and stock price.
Elliott holds Southwest's management responsible for the airline's stock price dropping by more than half in three years. Along with Kelly, the hedge fund sought to replace CEO Robert Jordan, but he will remain in his role.
In a statement, Kelly expressed satisfaction with Southwest and Elliot's collaborative agreement, noting that the partnership continues to refresh the Board by adding new directors with diverse and complementary skills and experience.
"I am confident this Board will continue to hold the leadership team accountable for executing its transformational plan and delivering financial performance," Kelly added. "It has been the honor of my lifetime to work with our People and serve our Customers in making Southwest the leader it is today. I believe Southwest's best days lie ahead under the vision and leadership of Bob Jordan and the oversight of this reconstituted Board."