Harley-Davidson(US:HOG) Fox Businessยท2025-04-16 16:01Core Viewpoint - A major shareholder, H Partners Management, is advocating for significant changes to Harley-Davidson's board, specifically calling for the removal of CEO Jochen Zeitz and two other long-standing board members due to dissatisfaction with the company's performance and governance [1][4][6]. Group 1: Shareholder Actions - H Partners Management holds approximately 9.1% of Harley-Davidson's shares and is urging other shareholders to vote "withhold" at the upcoming shareholder meeting in May regarding the re-election of Zeitz and two board members [2][4]. - The firm believes that voting to "withhold" would send a strong message of dissatisfaction with the current board and the need for meaningful change [4]. Group 2: Performance Concerns - H Partners has criticized the company's performance, attributing it to an "inability to course-correct," which they partly blame on CEO Zeitz and board member Thomas Linebarger [6][8]. - The company has experienced a significant decline in share value, with a drop of over 24% since the beginning of the year and a 42.7% decline over the past 12 months [9]. Group 3: Financial Overview - Harley-Davidson reported a revenue of $4.12 billion for 2024, reflecting a 14.9% decline year-over-year, with annual net income falling to $455.36 million [11]. - The company's forecast for 2025 indicates that revenue is expected to be "flat, to down 5%" [14]. Group 4: Leadership and Strategic Direction - H Partners is advocating for the immediate removal of Zeitz and the appointment of an interim CEO until a permanent replacement is found, expressing concerns that the current board cannot be trusted to oversee crucial decisions, including CEO succession [5][8]. - The firm emphasizes the need for a leader who can repair relationships with dealers, engage with riders, and restore the company's brand and culture [10].