Harley-Davidson faces board fight as activist – Business News
Investment firm H Partners has urged Harley-Davidson’s shareholders to take away three administrators from the board, together with its CEO, holding them answerable for the company’s declining gross sales and falling stock price.
H Partners, the long-lasting American model’s second-largest investor with a 9.1% stake, made the newest transfer days after the firm known as on CEO Jochen Zeitz to step apart instantly.
Zeitz, who grew to become the CEO in 2020, is anticipated to retire this yr however has mentioned he would keep till a substitute was discovered.
Harley-Davidson CEO Jochen Zeitz is anticipated to retire on the finish of this yr. Getty Images for Harley-Davidson
Harley, presently valued at $2.7 billion, has seen its share price drop 45% over the previous yr and decline 43% since April 2022 as the company struggles to appeal to new generations of riders.
The investment firm intends to run a withhold-the-vote marketing campaign to push out Zeitz, who has served as a director for 18 years, Norman Thomas Linebarger, who has been a director for 17 years, and Sara Levinson, a board member for 29 years, in response to a letter launched on Tuesday.
“We believe Mr. Zeitz, Mr. Linebarger, and Ms. Levinson should be held accountable for the destruction of shareholder value,” H companions mentioned in a assertion.
Harley didn’t instantly reply to a Reuters request for touch upon the letter.
H Partners didn’t counsel any various candidates within the letter.
Harley-Davidson’s stock price has fallen 45% previously yr and 45% since April 2022 as it struggles to appeal to a new era of riders. Getty Images
H Partners’ Jared Dourdeville final week resigned from Harley’s board, saying the company skilled “cultural depletion” due to the departure of senior leaders and its distant working insurance policies.
Harley’s board consists of eight members and the company is scheduled to carry its annual assembly on May 14.
Five years in the past at first of the COVID-19 pandemic, Harley confronted a boardroom problem from one other investment firm, Impala Asset Management, however rapidly settled that fight amid the uncertainty of the health disaster.
