NEW YORK (Reuters) – Southwest Airlines Chief Executive Rakesh Gangwal, who was picked by the company to join its board of directors amid mounting pressure from an activist investor, bought more than $100 million worth of stock and said on Wednesday more leadership changes would be “counterproductive” at the highest level. .”
Gangwal, co-founder of low-cost Indian airline InterGlobe Aviation, or IndiGo, bought 3.6 million Southwest shares on Sept. 30 and Oct. 1, according to Securities and Exchange Commission filings. He paid between $29 and $30 per share.
He said he made the purchases as soon as the so-called trading window, in which directors and other insiders are allowed to buy and sell the shares, opens.
Southwest placed Gangwal on the board in July as activist investor Elliott Investment Management increased pressure on the airline, demanding leadership and strategy changes to improve financial performance. The company announced a governance overhaul and other changes last month.
Last month, Southwest said executive chairman Gary Kelly will resign and six other directors will withdraw from the 15-member board of directors.
Elliott has maintained demands for more changes in top jobs, including the ouster of CEO Bob Jordan. Last week, the company said it plans to hold a special shareholder meeting to push for those changes.
Gangwal told Reuters on Wednesday that more unrest in the executive suite and boardroom would hurt shareholders. “I believe that changing the board structure and top leadership beyond what has already been announced would be counterproductive and not in the best interests of shareholders.”
(Reporting by Svea Herbst-Bayliss)
