Southwest Airlines is undergoing a significant board transformation as Chairman Gary Kelly plans to retire next year amid pressure from activist investor Elliott Management, which holds a 10% stake in the airline. The company will see the departure of six directors and intends to appoint four new independent members, potentially including nominees from Elliott. While the board is making substantial changes, it has reaffirmed its support for CEO Bob Jordan, despite Elliott's calls for his ouster. The restructuring includes the elimination of the executive committee and the establishment of a new finance committee to enhance oversight of financial strategies. The board's commitment to engage with Elliott suggests ongoing negotiations aimed at improving corporate governance and financial performance. Southwest aims for a collaborative resolution with Elliott to navigate these changes effectively.