Director Quits, Demands CEO Ouster
Harley-Davidson (NYSE:HOG) just made headlines for all the wrong reasons investors had hoped. A Board member Jared Dourdeville, who represents 9% shareholder H Partners, suddenly resigned after a furious fallout over CEO succession and the iconic American company’s direction. With a sharply worded letter, Dourdeville cited cultural depletion, executive turnover, and misalignment with the core brand as key issues. Slamming Harley’s response to political pressures and accusing leadership of alienating dealers with excess inventory and a broken product strategy was part of his statement. Four days before stepping down, Dourdeville had called for the immediate resignation of CEO Jochen Zeitz and two long-time board members from Harley-Davidson Motor Company.
Harley-Davidson has responded quickly with the ever unpopular CEO to step down but with their condition requiring a successor to be named before Zeitz’s exit. They also defended the direction of their strategy, pointing out that top-tier shareholder returns were better compared to peers. It dismissed the claims that Dourdeville had consistently pushed back in board meetings, specifying that he only dissented once when his nominee for the next CEO was rejected. Despite this very public drama, H Partners says it’s not going anywhere and will be continuing as a shareholder.
What does this all mean for you and me? This isn’t just boardroom entertainment– it’s a red flag for governance risk. Investors should weigh the leadership transition, as also the brewing tension with major shareholders, along with a potential identity crisis while Harley-Davidson tries to balance its exceptional legacy and being relevant in 21st century.
—Wayfarer
Associate Editor
Bikernet.com
