ISS supports Harley-Davidson board nominees amid CEO search

Published 05/05/2025, 22:02
ISS supports Harley-Davidson board nominees amid CEO search

MILWAUKEE - Institutional Shareholder Services Inc. (ISS), a prominent proxy advisory firm, has endorsed all of Harley-Davidson, Inc.’s (NYSE: HOG) director nominees for the upcoming Annual Meeting of Shareholders on May 14, 2025. While the stock has faced challenges, declining 26% over the past six months according to InvestingPro data, ISS’s backing comes in the wake of criticism from H Partners, which has been vocal about the need for changes within the company’s leadership.

ISS concluded that H Partners has not made a compelling case for altering the current board composition. The advisory firm acknowledged the positive impact of CEO Jochen Zeitz and the Hardwire Strategic Plan on the company’s trajectory. Supporting this view, InvestingPro data shows the company maintains strong profitability with an 11% return on equity and healthy liquidity, with current assets exceeding short-term obligations. ISS noted that under Zeitz’s leadership, Harley-Davidson stabilized business operations and refocused on core strengths, which has helped the company keep pace with industry peers after years of underperformance.

The board’s ongoing CEO search process was also defended by ISS, which found that the board had taken appropriate steps and had not dismissed H Partners’ preferred candidate without consideration. The proxy firm suggested that H Partners’ campaign may have actually delayed the CEO search process, rather than expedited it.

ISS’s recommendation supports the board’s role in overseeing the management’s execution of the Hardwire Strategic Plan, especially in light of challenging macroeconomic conditions. Tom Linebarger, Presiding Director of the Board, expressed satisfaction with ISS’s recognition of the board’s strength and governance structure.

Harley-Davidson’s board urges shareholders to vote in favor of their nominees, emphasizing the importance of maintaining the company’s strategic direction and governance integrity. The company’s vision and mission focus on innovation and the motorcycle lifestyle, with Harley-Davidson Financial Services supporting customers’ financing needs. Notable for income investors, the company has maintained dividend payments for 33 consecutive years, currently yielding 3.06%. Additionally, Harley-Davidson has a controlling interest in LiveWire Group, Inc., an electric motorcycle company. For deeper insights into HOG’s financial health and extensive metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.

The information in this report is based on a press release statement from Harley-Davidson, Inc.

In other recent news, Harley-Davidson reported impressive financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share of $1.07, a 32% increase over the forecasted $0.81, and reported revenue of $1.33 billion, exceeding expectations by $220 million. Despite these strong results, Harley-Davidson’s consolidated revenue saw a 23% year-over-year decline, reflecting challenges in global retail sales. The company has withdrawn its 2025 financial guidance due to economic uncertainties and potential tariff impacts, which are estimated to range between $130 million and $175 million. Citi analysts have responded by raising Harley-Davidson’s stock price target to $24, up from $23, while maintaining a Neutral rating, following the company’s robust margin performance. This adjustment reflects a cautiously optimistic market reaction to potential trade improvements. Harley-Davidson continues to navigate a complex business environment, with factors such as geopolitical shifts and fluctuating consumer demand influencing its strategy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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