Activist hedge fund H Partners is claiming a partial victory in its campaign to force change at Harley-Davidson, despite the re-election of three incumbent board members at the firm’s annual meeting, according to a report by Bloomberg.
Shareholders voted to back CEO and Chairman Jochen Zeitz, Presiding Director Thomas Linebarger, and longtime board member Sara Levinson, but H Partners, which owns 9.3% of the Milwaukee-based motorcycle manufacturer, claims its high-profile campaign has prompted board-level concessions and amplified investor scrutiny.
In a statement following the vote, the hedge fund asserted that all three directors privately indicated to key shareholders they would step down before next year’s annual meeting, effectively acceding to H Partners’ central demand for leadership change.
“We believe the outcome of today’s annual meeting sends a clear message that the direction of the company needs to change,” the hedge fund stated. “We are pleased that our campaign forced the board to engage directly with stakeholders that they had long ignored.”
Zeitz, who announced plans last month to resign, will remain CEO of the Milwaukee-based company until a replacement is found.
In a statement issued after the meeting Linebarger said: “We appreciate the valuable perspectives and feedback our shareholders have provided. We look forward to continuing to engage.”
A final tally of the shareholder votes had yet to be certified and will be disclosed in a regulatory filing, Harley said.
The proxy fight became public in April, when Jared Dourdeville, H Partners’ representative on the board, resigned and issued a scathing critique of Harley’s leadership under Zeitz. Alleging poor accountability, executive turnover, and a “foundering” corporate culture driven by remote work policies, Dourdeville’s resignation set the stage for a broader shareholder rebellion.
Harley defended its position, claiming H Partners’ agitation was linked to a CEO candidate proposed by the hedge fund failing to secure board approval.
