In an effort to reorganize its leadership after its experience with activist investor Elliott Investment Management (Elliott), Southwest Airlines has announced that two C-level executives will be departing in April.
Experienced executives
Southwest Airlines has announced that on April 1, Linda Rutherford, the chief administration officer (CAO), and Tammy Romo, the executive vice president and chief financial officer (CFO), will both retire.
For more than thirty years, Romo and Rutherford have guided Southwest Airlines with vision, honesty, and an unrelenting dedication to excellence, according to Bob Jordan, the company’s president and CEO.
“Both have managed the Company through highs and lows—and Southwest Airlines is better because of their influence on many of our most significant achievements. We are grateful for their contributions, which will shape our future for years to come.”
The current CFO and CAO started their careers with the airline in 1991 and 1992, respectively, while Romo and Rutherford both joined in the 1990s.
Communications and finances
Romo has held numerous leadership positions since joining the company in 1991, including senior vice president of planning, controller, treasurer, and head of investor relations, according to Southwest Airlines. The airline stated that it would start looking for a successor for Romo.
Since 2012, she has been in charge of the airline’s financial operations, supply chain management, corporate, fleet, fuel, and sustainability. She also assumed the position of executive vice president and CFO.
“Over Romo’s career, her accolades include being recognized by WomenInc. as a Most Influential Corporate Director in 2023, named CEO Magazine’s Outstanding CFO for a Public Company in 2022 and 2014, Dallas Business Journal’s 2014 CFO of the Year, and named in Institutional Investor’s All-America Executive Team for Airlines.”
Rutherford, meanwhile, began her career as a writer before joining the company as a public relations coordinator. Prior to becoming a CAO, she worked for seven years as the chief communications officer (CCO), demonstrating her commitment to communications.
Her current duties have included leadership, people talent, internal audit, culture and communication, technology, Total Rewards, and Southwest University. A Southwest Airlines representative noted, however, that the airline does not currently have any intentions to appoint a CAO.
“Among Rutherford’s myriad honors, she has received the 2023 PRWeek Women of Distinction, the 2023 Missouri Honor Medal, and the 2022 Institute of Public Relations Lifetime Achievement Award.”
Boardroom truce
Elliott started criticizing Southwest Airlines’ management in June, specifically Jordan and Gary Kelly, the former CEO and executive chairman who stepped down on November 1, 2024. Elliott blamed the current board and leadership for the underwhelming returns for shareholders.
At first, Kelly was supposed to retire after the airline’s annual shareholders meeting, which took place on May 15 of 2024.
However, in October 2024, following months of acrimonious public conflict that included “poison pills” and threats of holding a shareholder vote to remove the current leadership, the two parties reached an agreement on a peace settlement (or truce, depending on future events).
Then, Southwest Airlines stated that Kelly would be retiring earlier than expected and that six new directors, five of whom had been recommended by Elliott, would be joining the board. Moreover, following the annual shareholder meeting, the carrier’s board would be trimmed to 13 members.
Kelly stated at the time that the airline was happy to have come to an arrangement with Elliott, which led to the addition of new directors to Southwest Airlines who had complementing expertise and talents.
“I am confident this Board will continue to hold the leadership team accountable for executing its transformational plan and delivering financial performance.”
On November 4, 2024, Rakesh Gangwal, who joined the airline’s board in July 2024 amid Elliott’s proxy war, was appointed chair of the board.
FAQ
Why is Southwest Airlines’ CFO retiring?
Southwest Airlines’ CFO is retiring amidst a period of company upheaval, including changes in leadership and operational challenges. The decision to retire follows the CFO’s long tenure with the company and comes at a time when Southwest is navigating several challenges in its financial and operational strategies.
When is Southwest Airlines’ CFO retiring?
Southwest Airlines has announced that its CFO will retire in the near future, although the exact date of retirement has not yet been publicly disclosed. The transition is expected to occur soon as the company plans for leadership succession and the future of its financial operations.
What challenges is Southwest Airlines facing amid this upheaval?
Southwest Airlines has faced several challenges in recent years, including operational disruptions, staffing shortages, and the impact of the COVID-19 pandemic. The company is now working on stabilizing its operations, improving financial performance, and implementing a leadership transition plan.
Who will replace Southwest Airlines’ CFO after their retirement?
Southwest Airlines has not yet announced a replacement for its CFO. However, the airline is expected to appoint a new CFO as part of the leadership transition. The new CFO will play a key role in overseeing the airline’s financial strategy and addressing ongoing operational challenges.
How is Southwest Airlines responding to the upheaval?
Southwest Airlines is actively managing the upheaval by focusing on strengthening its leadership team, improving operational efficiency, and restoring customer confidence. The company is also implementing changes to address its staffing and operational challenges and ensure long-term stability in its financial outlook.
