By John Keilman
A director who represents Harley-Davidson's second-largest shareholder has resigned from the company's board, accusing leaders including Chief Executive Jochen Zeitz of making decisions that have damaged the brand.
In a letter dated Saturday, Jared Dourdeville of the New York investment firm H Partners said the company had suffered "cultural depletion" because of an extensive, white-collar work-from-home policy and the exit of many senior leaders.
Dourdeville's letter echoed the complaints of many dealers who have said Harley has hurt their profits, shipped too many motorcycles they can't sell and ignored the market for entry-level bikes. Dourdeville also said Harley flubbed its response last year to the campaign waged last year by conservative activist Robby Starbuck against diversity, equity and inclusion policies.
The former director said that four days before sending the letter he had called for the immediate resignation of Zeitz, who also serves as the company's chairman, along with longtime directors Sara Levinson and Tom Linebarger. He resigned when no meaningful progress was made, he said.
The company on Tuesday announced Zeitz's plan to retire as CEO but said he would stay in the role until his replacement was chosen.
Harley said Dourdeville, who joined the board in 2022, didn't dissent during board meetings over the concerns he outlined in his letter. According to the company, he cast only one vote against the majority during his tenure -- when his fellow directors in late March declined to hire his preferred candidate as the next CEO.
The company said Dourdeville didn't object to Harley's strategy, which it said had brought a better total shareholder return than all but one of its peers in the motorcycle and powersports industries.
H Partners, which declined to comment, holds 9% of Harley's stock, according to FactSet. Dourdeville said in his letter that the firm would remain a shareholder.
The company released Dourdeville's letter with redactions just before the market closed Wednesday. Harley stock was up nearly 14% on the day after President Trump announced a pause on wide-ranging tariffs.
Write to John Keilman at john.keilman@wsj.com
(END) Dow Jones Newswires
April 09, 2025 19:58 ET (23:58 GMT)
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