Harley-Davidson, the 121-year-old titan of American motorcycling, is navigating a storm of financial turbulence, executive compensation controversies, and eroding rider loyalty. In 2022, CEO Jochen Zeitz earned 43.3 million, a figure that contrasts with the company’s 117 million net loss in Q4 2024.
Meanwhile, dealerships shutter, electric ambitions sputter, and younger riders shrug. As Harley prepares for Zeitz’s 2025 retirement, we examine the data, the dissent, and what’s at stake for motorcycling’s most storied brand.
1. The CEO’s $43M Payday
In 2022, Zeitz’s compensation skyrocketed to 43.3 million, thanks to a stock plan tied to tripling Harley’s value by 2025. Fast−forward to 2024: Harley’s stock hovers around 36–38. Worse, the company’s revenue dropped 11%, and net income fell 36%.
Riders are furious. One biker blasted, “He’s getting richer while my local dealership closes?” Another pointed out that Zeitz’s pay in 2022 was 539 times the average Harley worker’s salary. Even Polaris (Indian Motorcycle’s parent company) pays its CEO less relative to employees.
This isn’t just about money—it’s about trust. How can Harley justify CEO bonuses while riders face $20K out-the-door prices for a Sportster S?
2. The “Harley Tax”
Harley’s bikes have always been premium, but lately, the premium feels punitive. Take the Sportster S: MSRP is $15,000, but dealers slap on markups, freight fees, and “setup” charges, pushing the real cost to over $20K.
Compare that to Indian’s Scout ($13K) or BMW’s R18B ($6K cheaper than a Street Glide).
Riders aren’t just mad about prices—they’re fed up with dealerships. Stories abound of pushy sales tactics, hidden fees, and service centers that treat you like a wallet on wheels.
One Rider shared: “I walked into my dealer ready to buy a Road Glide. They wouldn’t even talk price until I sat through a 45-minute financing pitch. I left and bought a used Electra Glide instead.”
Harley’s “Hardwire” strategy, which axed affordable models like the Street 750, isn’t helping. Younger riders can’t afford a $17K Sportster S as their first bike.
3. Dealership Closures
In 2024 alone, iconic Harley dealers in New York City, Fullerton (CA), and Titusville (FL) shut down. Over 100 U.S. dealerships shuttered since 2020, per industry reports.
“Dealers aren’t just stores—they’re cultural hubs,” says Jim Barrett, former owner of Lima Harley-Davidson (closed after 40 years). “Losing them fractures the H.O.G. ecosystem.” Harley claims these closures are part of “optimizing” the network. But riders see it as corporate abandoning the very people who built the brand.
4. A $110 Million Electric Misfire
Harley bet big on electric bikes with LiveWire, but sales are a disaster. In 2024, they sold just 612 units globally—down 7% from 2023. Compare that to Zero Motorcycles, which moved ~4,500 bikes in 2022.
Why It’s Failing:
- The LiveWire One costs $22,000—more than many gas-powered Harley cruisers.
- Riders complain about “laughable” highway range and slow charging.
- One LiveWire owner shared: “My local Harley dealer didn’t even know how to reset the error codes. I had to YouTube it.”
Harley’s core riders love tradition, not tech. Meanwhile, Gen Z wants affordable, practical EVs—not $15K e-bikes that can’t outrun a Honda Rebel.
5. Can Harley Save Itself?
The good news? Harley still dominates Touring bikes (74% market share). The bad news? Their strategy feels stuck in neutral.
What Needs to Change:
- Affordable Bikes: Bring back entry-level models. Not everyone can drop $20K on their first Harley.
- Fix the Dealer Experience: Train staff to respect riders, not upsell them. Mandate transparent pricing and invest in EV technician training.
- Align Pay with Performance: Tie executive bonuses to rider growth, not stock fantasies.
New CEO, New Hope?
Harley-Davidson’s challenges are systemic but not insurmountable. With Zeitz retiring in 2025, Harley has a chance to reset. Jonathan Root, Harley’s new CFO and President, has a reputation for frugality. Maybe he’ll steer the ship toward value and innovation.
As the rumble of Harleys echoes through Sturgis this summer, one question lingers: Will the Motor Company listen to the roads it once ruled or let its legacy idle?
