Southwest Airlines Company (NYSE:LUV) shares are trading lower on Wednesday.

Elliott Investment Management, which holds roughly an 11% economic stake in Southwest Airlines, announced yesterday its plan to nominate ten independent and highly qualified candidates for the airline's Board of Directors.

Elliott Investment has previously advocated for three critical actions to restore Southwest Airlines' position —reconstituting the Board, installing new leadership, and conducting a comprehensive business review.

According to Benzinga Pro, LUV stock has lost over 24% in the past year. Investors can gain exposure to the stock via U.S. Global Jets ETF (NYSE:JETS) and Themes Airlines ETF (NASDAQ:AIRL).

Related Read: 'Poison Pill' Activated: Southwest Airlines Counters Elliott Investment's Move With Defense Strategy

Elliott said Southwest's performance has deteriorated since its initial report on June 10, and the Board has responded by further entrenching itself and resisting change.

Elliott noted that these candidates would offer shareholders a choice between the current Board, which has delivered poor returns and failed to hold management accountable for Southwest's performance, and a new Board with relevant expertise, fresh perspectives, and a commitment to accountability.

Elliott's candidates are as follows: Michael Cawley, David Cush, Sarah Feinberg, Josh Gotbaum, Dave Grissen, Nancy Killefer, Robert Milton, Gregg Saretsky, Eash Sundaram, and Patty Watson.

If elected, Elliott believes these candidates will help restore the company to its status as a leading airline with top-tier profitability.

In response, Southwest said, "The Southwest Airlines Board and Executive Leadership Team remain open to conversations with Elliott to discuss ideas to drive Shareholder value, and the Board will evaluate Elliott's proposed nominees as part of its ongoing Board refreshment process."

Southwest Airlines said Elliott recently agreed to a meeting in early September to discuss a collaborative resolution but unilaterally decided instead to publicly announce its intention to replace a majority of the Board.

Southwest Airlines plans to provide additional details on a comprehensive plan to transform its business, improve operational efficiency, and deliver capital allocation discipline during its Investor Day in late September.

Southwest Airlines said its Board remains confident that the airline has the right leadership team in place to evolve the business.

Price Action: LUV shares are trading lower by 0.78% to $25.22 at last check Wednesday.

Image by Around the World Photos via Shutterstock

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