Rakesh Gangwal, a director at Southwest Airlines Co LUV, has made a significant investment in the company by acquiring 3.6 million shares, valued at over $100 million. This purchase comes amid mounting pressure from activist investor Elliott Investment Management for changes in leadership.

What Happened: Gangwal, who co-founded InterGlobe Aviation, bought the shares between Sep. 30 and Oct. 1, at prices ranging from $29 to $30 per share, as per the Securities and Exchange Commission filings.

Appointed to the board in July, Gangwal’s entry coincided with Elliott’s push for strategic shifts to boost financial performance. Recently, Southwest announced significant board changes, including the retirement of Executive Chairman Gary Kelly and six other directors.

Despite Elliott’s demands for further changes, including the removal of CEO Bob Jordan, Gangwal told Reuters that additional leadership alterations would not benefit shareholders.

“I believe changing the board structure and top leadership beyond what has been already announced, would be counterproductive and not in the best interest of shareholders,” Gangwal said.

See Also: Cramer Says ‘Hot Money’ Flowing From Nvidia, Apple Into China, Focus On Alibaba ‘If You Must’

Why It Matters: The backdrop to Gangwal’s investment is a period of intense scrutiny and pressure from Elliott Investment Management, which has been vocal about its dissatisfaction with Southwest’s management. In August, Elliott disclosed a 7% stake in the airline, advocating for a management overhaul, including the replacement of CEO Jordan and Executive Chairman Kelly.

In a strategic move, Elliott nominated ten independent candidates for the board, aiming to reshape Southwest’s leadership. This came after Elliott criticized the airline’s outdated strategies and poor execution, promising a 77% stock return potential if changes were implemented.

Amid these developments, Southwest Airlines announced a new $2.5 billion share repurchase program, signaling a focus on shareholder value. The airline’s stock has experienced fluctuations, reflecting investor reactions to these ongoing boardroom dynamics.

Price Action: Southwest Airlines’ stock closed at $29.57 on Wednesday, down 1.04% for the day. In after-hours trading, the stock rose by 2.19%. Year to date, Southwest Airlines has gained 3.83%, according to data from Benzinga Pro.

Read Next:

Image Via Shutterstock

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote