By Svea Herbst-Bayliss
NEW YORK (Reuters) -Harley-Davidson on Wednesday beat back investor H Partners’ proposal to remove three directors, including the CEO, the company said in a statement.
The victory for Harley comes roughly one month after H Partners, the second-largest investor in the motorcycle maker with a stake of 9.1%, stepped up its campaign to immediately push out Jochen Zeitz, who has run the company since 2020.
The company did not detail the vote tally and one source familiar with the numbers said it was a "razor-thin outcome" for Zeitz.
Proxy advisory firm Institutional Shareholder Services, whose recommendations often influence how shareholders vote, said H Partners failed to make "a compelling case for change" and urged investors to elect all of the company’s directors.
H Partners has criticized the company for declining sales and a falling stock price and has pushed to replace Zeitz with an external candidate.
Zeitz is expected to retire this year but has said he would stay until a replacement was found.
Shares of Harley, valued at $3 billion, have dropped 31% over the past year as the company struggles to appeal to new generations of riders. On Wednesday, Harley shares dipped 0.3% to close at $24.92.
The voting results were first reported by the Wall Street Journal.