Skechers Cuts Ties with Global 5000: What’s Next for the Jet?

Miami Beach, USA - In a significant move, Skechers USA has officially phased out its only company-owned Global 5000 aircraft, which had been a part of its executive jet fleet for nearly two decades. The Bombardier Business Aircraft, known as N10SL, was configured to comfortably seat up to 14 passengers. However, it has been largely inactive since December 2024, with just two flights completed in the interim: one from Long Beach to Miami Opa-Locka on January 28 and another to Dallas Love Field on April 15. This marks a clear shift in the company’s aviation strategy, especially given that it has decided to allow the aircraft to be deregistered as of April 18 and exported to Mexico, as CH Aviation reports.

The decision to phase out the Global 5000 aligns with pressures facing Skechers in recent years. A lawsuit filed by shareholder Michael Conte came to light, accusing the company’s senior executives of excessively using corporate aircraft, which led to outrageous costs. While the lawsuit drew significant attention from various media outlets, it was ultimately dismissed in 2024, reaffirming Skechers‘ position. Munger, Tolles & Olson managed to secure a win in the Delaware Supreme Court, whereby the court upheld the dismissal of the lawsuit, citing a lack of sufficient evidence showing that the board had acted improperly.

Legal Victory and Corporate Governance

What’s noteworthy about this case is the emphasis it places on the authority of corporate boards under Delaware law. The Supreme Court’s ruling, unanimous among its five-justice panel, supported MTO partner John Gildersleeve’s argument that the allegations didn’t reflect a valid claim for misconduct. The court dismissed claims that Skechers’ directors failed in their oversight and disclosure duties, showcasing the protective measures in place for companies against unfounded litigation, as highlighted in Munger, Tolles & Olson.

Corporate governance experts have pointed out that this case serves as a crucial reminder of the boundaries of shareholder litigation. It illustrates how boards are empowered to manage litigation and decide on the company’s strategy effectively. The case also drew significant coverage from media giants including Bloomberg Law and Law360, further emphasizing its impact on corporate governance discourse.

Looking Forward

As Skechers continues to manage its executive jet fleet, it still retains two Global 6000s, which are expected to be used more efficiently in future operations. With the recent legal hurdles behind them, one might wonder what the future holds for both Skechers and similar corporations navigating the waters of corporate governance and shareholder interests.

These developments come alongside broader discussions occurring across the financial landscape, including a recent conference about emerging trends in asset management. Stakeholders from diverse backgrounds convened to discuss historical and prospective changes, signaling that all eyes are on how corporations like Skechers adapt in this evolving environment, as noted by discussions reported on Harvard Law School’s Corporate Governance Blog.