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Harley-Davidson board member resigns, expresses company concerns
A Harley-Davidson board member has resigned after recently expressing "grave concerns" about the current state of the company to the board.
MILWAUKEE - Harley-Davidson is ingrained in Milwaukee's history, identity and economy. Now there's a leadership shakeup and questions about the 122-year-old company's future.
CEO to retire
What we know:
In 2020, with new CEO Jochen Zeitz at the helm, Harley-Davidson unveiled its five-year strategic plan called "The Hardwire." The goal was to increase profits and broaden the customer base.
Harley-Davidson Milwaukee headquarters (SKYFOX)
And now in its final year, the overall direction of the company is under fire.
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Earlier this week, Harley-Davidson confirmed it began its search for a new CEO last year. The search process was initiated in Q4 2024 after CEO Jochen Zeitz expressed his interest in retiring.
Harley-Davidson CEO retiring; company seeks successor
Harley-Davidson’s CEO is retiring after five years and the Milwaukee-based company is looking for his successor.
Zeitz will retire after a new CEO is chosen.
Board member resigns
Dig deeper:
Investment firm H Partners owns more than 9% of company stock. Jared Dourdeville joined the board in 2022 on H Partners' behalf.
U.S. Securities and Exchange Commission (SEC) filings show Dourdeville wrote a scathing letter to the company’s Board of Directors on April 1, calling for the immediate resignations of Zeitz and other leaders, including presiding director Tom Linebarger, and board member Sara Levinson.
He also expressed "grave concerns about the current state of the company."
In the letter, Dourdeville cited "severe underperformance" and a "cultural depletion," questioning the company's "white-collar-work-from-home policy" and turnover.
Dourdeville resigned on Saturday, April 5, citing declining sales, excess dealership inventory, dwindling profits and the lack of accountability and direction of Zeitz’ "The Hardwire" strategy.
The other side:
In response, Harley-Davidson said in an SEC filing that "Mr. Dourdeville was not a dissenting voice in the boardroom as to matters he raised in his letter," noting that in more than three years on the board, Dourdeville "never voted against the director majority on any matter, except one – the board’s decision not to extend an offer to his preferred CEO candidate."
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The company also detailed the timeline of Dourdeville’s resignation:
- March 26, 2025: The board met with three CEO successor candidates
- March 28, 2025: The board decides not to extend an offer to any candidates
- April 1, 2025: Dourdeville sends a letter to the board, demanding the resignation of three directors
- April 3, 2025: Harley-Davidson files a proxy statement recommending the reelection of all current directors. The board e-mails Dourdeville about the letter, points raised, and times to meet for formal discussion. Dourdeville doesn’t respond or object to the proposed plan.
- April 4, 2025: Dourdeville agrees to attend the April 7 board meeting to discuss the April 1 letter and demands
- April 5, 2025: Dourdeville resigns
Meanwhile, Dourdeville said he and H Partners remain committed to Harley-Davidson's success.
Local perspective:
"It could have long-term implications, depending on how H Partners approaches this," Marquette University Associate Professor of Management Dr. Kalin Kolev said. "If we take those words. Probably they might appoint a different director, since they are a major shareholder, so they will have the power to do that."
What's next:
That could lead to a common direction. If not, experts say it could lead to more scrutiny for the company and less investor confidence.
The Source: The information in this post came from SEC filings and prior FOX6 News coverage.