Harley-Davidson (HOG) shares soared 5.79% in Tuesday's trading session, as investors reacted to a developing boardroom battle and conflicting recommendations from influential proxy advisory firms ahead of a crucial shareholder vote.
The motorcycle manufacturer is at the center of a heated dispute between activist investor H Partners and the company's current leadership. H Partners is pushing to remove three long-standing board members, including Chairman and CEO Jochen Zeitz, citing concerns over the company's strategy execution and recent performance. This campaign has gained traction among some shareholders and dealers, with the National Powersports Dealer Association publicly siding with H Partners.
Adding to the intrigue, major proxy advisory firms ISS and Glass Lewis have issued split recommendations. While ISS supports maintaining the current board, Glass Lewis backs the activist investor's push for change, citing "starkly suboptimal shareholder returns." This division among influential advisors has likely contributed to increased investor interest and speculation about potential changes in Harley-Davidson's leadership and strategy, driving the stock's significant rise ahead of the May 14 annual meeting.
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