In a boardroom showdown that could’ve rivaled a barroom brawl, Harley-Davidson’s top brass managed to keep their seats—if only by the skin of their teeth.
The annual shareholders meeting saw activist investor H Partners, wielding a hefty 9.1% stake, aiming to oust CEO Jochen Zeitz and board members Thomas Linebarger and Sara Levinson. Their gripe? A cocktail of declining sales, a 31% stock slump, and a culture they claimed was losing its roar.
Zeitz Not Out as Harley-Davidson CEO
But the vote didn’t tip in their favor. While nearly 48% of shareholders withheld support for Zeitz, it wasn’t enough to boot him under Harley’s rules. Still, the close call wasn’t without consequence. The trio agreed to step down before next year’s meeting, and the board committed to finding an external successor for Zeitz.
H Partners, despite the loss, claimed a moral victory, stating, “We believe that this shareholder mandate can create a brighter future for Harley-Davidson.” Their campaign, dubbed “Free the Eagle,” garnered support from dealers and even some proxy advisory firms, though Institutional Shareholder Services sided with Harley’s current leadership.
As the dust settles, Harley’s board faces the challenge of steering the iconic brand through turbulent times. With Zeitz’s impending departure and the search for new leadership underway, the road ahead is uncertain. But if there’s one thing Harley riders know, it’s how to navigate a winding path with grit and determination.
Source: Motorcycle.com, WSJ
