Harley-Davidson Navigates Proxy Battle with ISS Support and Strategic Focus

In a pivotal week for Harley-Davidson Inc., the iconic motorcycle manufacturer has garnered significant backing from Institutional Shareholder Services (ISS), a leading independent proxy advisory firm. This support comes amid a contentious proxy battle with H Partners, a hedge fund known for its aggressive stance on corporate governance and strategic direction.

On May 5, 2025, ISS recommended that Harley-Davidson shareholders vote “FOR ALL” of the company’s director nominees. This endorsement underscores the advisory firm’s confidence in the current board’s ability to steer the company effectively, particularly in the ongoing CEO search. ISS’s backing is a critical development, as it highlights the board’s qualifications and the progress made under the leadership of CEO Jochen Zeitz, especially in executing the Hardwire strategic plan.

The proxy battle has intensified as H Partners has criticized Harley-Davidson’s strategy and governance, claiming that their campaign has delayed the CEO search process. In response, Harley-Davidson has issued a letter to shareholders, emphasizing the board’s critical skills and experience necessary for selecting the next CEO and driving future growth. The company has also pointed out that H Partners has not presented a compelling case for change, suggesting that their actions may be detrimental to shareholder value.

Amidst this corporate drama, Harley-Davidson’s stock has experienced volatility. As of May 1, 2025, the stock closed at $23.51, reflecting a significant drop from its 52-week high of $39.93 in September 2024. The market capitalization stands at approximately $2.85 billion, with a price-to-earnings ratio of 8.77, indicating potential undervaluation given the company’s strategic initiatives and market position.

The proxy battle and ISS’s support are pivotal as Harley-Davidson prepares for its annual meeting on May 14, 2025. The outcome will likely influence the company’s strategic direction and its ability to navigate the challenges of a competitive market. Investors and stakeholders are closely watching as Harley-Davidson defends its board’s performance and strategic vision, aiming to secure a stable and prosperous future for the brand.

In the broader market context, other notable developments include Skechers’ agreement to be taken private by 3G Capital for $9.42 billion, marking the largest buyout in the footwear industry. Meanwhile, Proscenium Events has announced a bold leadership initiative aimed at driving growth and innovation, signaling a strategic realignment within the live event production sector.

As Harley-Davidson continues to navigate its internal challenges, the support from ISS and the board’s strategic focus will be crucial in shaping the company’s trajectory and maintaining its iconic status in the global motorcycle industry.