DALLAS — Dallas-based Southwest Airlines named a new board chair Monday.
Rakesh Gangwal, co-founder of India’s largest carrier IndiGo who started his career with United Airlines and went on to run U.S. Airways, was appointed Southwest’s new board chair to replace former board chair Gary Kelly. Kelly agreed to retire early from his role as board chair as part of an agreement in a bid to end a proxy fight with activist investor Elliott Investment Management.
Gangwal has served on Southwest’s board since July and his appointment as the board’s chair comes after Kelly and six other directors retired Nov. 1. Co-founder and CEO Herb Kelleher held the position from 1978 to 2008, followed by Kelly, according to our partners at the Dallas Business Journal.
“We are embarking on the next era of change at Southwest as we build upon its many successes and storied past,” said Gangwal. “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."
Southwest also named new committee chairs Monday: Lisa Atherton will serve as chair of the compensation committee, Douglas Brooks will serve as chair of the audit committee, David Hess will continue to serve as chair of the safety and operations committee, Chris Reynolds will serve as chair of the nominating and corporate governance committee and Greg Saretsky will serve as chair of the finance committee.
"On behalf of the entire Company, I look forward to working with our new Board as we execute our plan and deliver for our Shareholders,” Southwest CEO Bob Jordan said. “I especially want to thank our people for their unwavering commitment to each other and to providing exceptional service to our Customers. Our People are at the Heart of Southwest's Culture and what separates us from the competition."
Southwest reached a deal with Elliott to avoid a proxy fight in late October, that included adding five of the investment firm’s nominees and a sixth independent member to its boards of directors. As part of the deal, Southwest’s board was reconfigured to 13 seats.
Those board members are:
- Pierre Barber: Former vice president at chief financial officer at Chevron
- David Cush: Former CEO of Virgin America
- Sarah Feinberg: Former administrator at the Federal Railroad Administration
- Dave Grissen: Former group president of Marriott International
- Gregg Saretsky: Former CEO of Westjet
- Patricia Watson: Chief information and technology officer at NCR Atleos
Elliott had called for Kelly and Southwest CEO Bob Jordan’s ouster. Jordan has managed to keep his job as CEO.
