The acrimonious war of words between Harley-Davidson, H Partners, Dealers and Shareholders comes to a vote today. Allegations of backdoor deals, improprieties and incompetency have been Internet cannon fodder for weeks “he said/she said.” On May 6, the Motor Company issued a letter to the shareholders noting in part:
“We believe the Directors targeted by H Partners are critical in choosing the next CEO to lead the Company, as they collectively bring deep institutional knowledge of Harley-Davidson, leadership experience with iconic brands, extensive expertise in manufacturing and engineering and track records of successful business transformation.” The letter also quotes outgoing(?) CEO Jochen Zeitz and the two long-term Board members singled out by H Partners and others.
To our shareholders,
For over a century at Harley-Davidson, we have built an iconic American brand and symbol of motorcycle culture and lifestyle. Our Board and management team are passionate about that legacy and are working tirelessly to protect and preserve it, and we are committed to setting the Company up for the next century. Our Board has taken action seeking to transform the business and drive value for shareholders.
H Partners has launched what is, in our view, a harmful and disingenuous campaign that puts the value of your investment at risk. H Partners had a representative in the boardroom for the past three years and had every opportunity to address issues that were important to them. They never did. H Partners voted in line with the rest of the Board, consistently supported CEO Jochen Zeitz, endorsed the Hardwire strategic plan and management’s execution of it, voted in favor of all Directors standing for reelection this year and actively participated in the CEO search process.
H Partners’ campaign is about getting their way, not about protecting your interests. They quit the Board after their preferred candidate did not receive majority support from the Board. This was due to the Board’s assessment of the skills and qualities needed in the next CEO to uphold Harley-Davidson’s rich heritage and drive value for all shareholders. Now, H Partners is resorting to a disruptive and misleading campaign in a blatant attempt to gain control over an American icon.
Harley-Davidson’s Board Has the Critical Skills and Experience Needed to Choose Our Next CEO and Drive Future Growth
H Partners is targeting two independent Directors with years of institutional knowledge that we believe is critical in choosing the strongest CEO candidate to lead Harley-Davidson. They are also targeting our outgoing CEO — who they fully supported until they launched their campaign, and who is fully committed to continuing to guide the execution of the Company’s strategy and supporting a successful leadership transition.
Jochen Zeitz
Chair, President, & CEO, Harley-Davidson Inc.
• Proven executive with a track record of delivering value for shareholders
• Vast experience in business transformations at global companies, demonstrated by his leadership during the successful turnaround at PUMA, where share price increased by ~4,000%
• Instrumental in developing and executing the Company’s strategy
• Committed to a smooth transition to Harley-Davidson’s next CEO
“I’m here to finish what I started — channeling my deep passion and commitment to Harley-Davidson by ensuring the next leader of this great Company is best positioned to drive value for our stakeholders. We have made great progress on transforming the business, and it is my mission to do everything I can to help reignite Harley-Davidson as one of the most revered and iconic brands in the world. I love everything that Harley-Davidson stands for and I want people to be riding our bikes into the next century.” – Jochen Zeitz
Norman Thomas Linebarger
Former Chair & CEO, Cummins, Inc.
• Extensive experience in manufacturing and engineering
• Provides the continuity and leadership that are essential in Harley-Davidson’s CEO transition process
“In this critical moment for Harley-Davidson, I’m focused on ensuring the Board is able to maintain the stability, leadership and independence required to pick the right CEO who will usher in Harley-Davidson’s next era of success, building on this storied Company’s remarkable legacy.” – Norman Thomas Linebarger
Sara Levinson
Media, Sports & Entertainment Executive
• Leadership experience with major iconic brands
• Deep institutional knowledge of Harley-Davidson
•Significant corporate governance experience from service as an executive of several major consumer-focused companies
“I have great respect for the unique brand and culture that are essential to our employees, dealers, and, most importantly, our riders. I deeply value the powerful emotions reflected in every product and experience we create. Preserving this connection is critical to Harley-Davidson’s future success.” – Sara Levinson
The full letter to shareholders and other information related to Harley-Davidson’s Annual Meeting can be found on the Resources section of:
