Investment firm H Partners is preparing for a battle to remove three directors from Harley-Davidson’s (NYSE: HOG) board, just days after calling for the immediate resignation of CEO Jochen Zeitz. This comes as the company struggles with declining sales and a sharp drop in stock price, according to a source familiar with the matter.
H Partners, which holds a nearly 9% stake in Harley-Davidson, plans to ask shareholders to vote out three members of the eight-person board at the annual meeting on May 14. The firm seeks to remove Zeitz, who has been a director for 18 years, along with Thomas Linebarger, a 17-year board veteran, and Sara Levinson, who has served for 29 years.
In addition to the board vote, H Partners has been pushing for quicker changes. Just days ago, they called for Zeitz, who has been CEO since 2020, to step down immediately. Although Zeitz is expected to retire later this year, he has stated that he will remain until a successor is found.
Harley-Davidson, valued at $2.7 billion, has seen its stock plummet 45% over the past year and 43% since April 2022. The company continues to face challenges in attracting new generations of riders.
Jared Dourdeville, a representative for H Partners, resigned from Harley’s board last week, citing “cultural depletion” caused by senior leader departures and remote work policies.
This move marks a new chapter in Harley’s corporate battles. Five years ago, during the COVID-19 pandemic, the company faced a similar challenge from Impala Asset Management, but the issue was quickly resolved amid the uncertainty of the health crisis.
Related Topics:
