Investing.com -- Southwest Airlines (NYSE:LUV) board member Rakesh Gangwal, appointed during increased pressure from activist investor Elliott Investment Management, recently purchased over $100 million worth of company stock, it was revealed.
Gangwal, a co-founder of InterGlobe Aviation, acquired 3.6 million Southwest shares between September 30 and October 1, according to filings with the Securities and Exchange Commission.
The shares were bought at prices ranging from $29 to $30 each.
Gangwal made the purchase as soon as the company's trading window for insiders opened, allowing directors and executives to buy or sell stock.
He was added to Southwest's board in July, following Elliott Investment Management's push for leadership and strategic changes aimed at improving the airline's financial performance.
In response to the pressure, Southwest recently announced several major changes, including a board restructure.
As part of this overhaul, Southwest revealed last month that executive chairman Gary Kelly would be stepping down, and six other board members would also be retiring.
Despite these significant changes, Elliott continues to call for further adjustments, including the removal of CEO Bob Jordan. Last week, Elliott signaled its intent to request a special shareholder meeting to push for additional leadership changes.
In an interview with Reuters, Gangwal expressed concerns about further disruptions in Southwest's leadership, stating that more changes would be "counterproductive" and detrimental to shareholders.
He stressed that beyond the steps already announced, additional alterations to the board or executive team would not be in the best interest of shareholders.