Harley-Davidson’s Entrepreneur and New Mastermind

Jochen Zeitz — Harley-Davidson interim President and CEO

The ultimate maverick has been hired to preserve and renew the freedom to ride.

I’m talking about Jochen Zeitz — the entrepreneur and new mastermind in charge of Harley-Davidson until he is offered the position permanently or a recruitment committee finds a replacement CEO.

So, what do we know and who is this man?

• Speaks seven languages — five spoken fluently including Swahili
• Has his own charitable foundation
• Owns unpublished Hemingway letters and collects robust amounts of African art.
• Owns a luxury tent-camp in Kenya’s Masai Mara game reserve close to the confluence of the Sand and Keekorok Rivers
• A published author: one book is a dialogue with Benedictine monk Anselm Grün called The Manager and the Monk: A Discourse on Prayer, Profit and Principles
• Co-funded ‘The B Team‘ with Sir Richard Branson
• Awarded the Financial Times Strategist of the Year award — three times
• Honored by the fatherland and awarded the German Federal Cross of Merit
• Sits on the Kenya Wildlife Service (KWS) board
• Formed the Zeitz Museum of Contemporary Art Africa (Inside: Zeitz MOCAA)
• Founded ‘The Long Run,’ an organization that grades sustainable tourism projects
• Purchased a 50,000-acre Kenyan retreat — Segera Retreat Lodge — to develop a new type of tourism leveraging “the 4Cs”
• A pilot and travels across Kenya in his 1929 Gypsy Moth biplane that was used in the Oscar-winning movie, Out of Africa
• Wears t-shirts, no socks, meditates, likes to run and became a guitar virtuoso in 5-years — professional percussive technique

Jochen Zeitz at Segera Retreat Lodge

As a slacker who would debate a good life is better than a good job, paint me truly inspired for that list of accomplishments!

Talk about an extreme producer with a missionary zeal!  And, I haven’t mentioned the best part… a profile of his “day job” achievements.

Mr. Zeitz represents qualities too good to be true and the idea of him shilling for some corporation to hawk motorcycles deflates the “HERO” excitement.  It’s clear, Mr. Zeitz won’t be satisfied until he has done everything to promote his vision of a new, better world.

LiveWire — Jochen Zeitz — Milwaukee, WI

With his multi-millions in fortune, Jochen Zeitz is likely the richest person in history to run Harley-Davidson as interim president and CEO.

So, again, who is the 57-year old sandy-haired, 6’1’’ athletic build of a man?

Mr. Zeitz was born in Mannheim, Germany, in 1963, to a gynecologist father and dentist mother.  He grew up in a time when the Green Party and the anti-nuclear movement were enjoying strong support in Germany.  Along with the time he spent at the family’s lodge in the Odenwald forest, the outdoor exposure planted seeds of interest in environmentalism.  He was educated at Karl-Friedrich Gymnasium, Mannheim, south-west Germany, and then international marketing and finance at the European Business School of Oestrich-Winkel near Wiesbaden.

Jochen Zeitz and wife Kate Garwood

Mr. Zeitz began his professional career with Colgate-Palmolive in Hamburg in 1986. He then moved to Herzogenaurach in the Franconian countryside to work for sporting goods manufacturer Puma (Bio) in 1988. From there, he rose rapidly though the ranks to become head of marketing in 1991 and vice president — international and head of the global marketing and sales department.  In 1993, at the age of 30, he became chairman of the board of Puma, making him the youngest CEO of German firms with commercially traded stock. He dramatically reduced staff numbers, took production to Asia, made English the corporate language, started sponsoring African football teams and was credited with turning around the near-bankrupt business into one of the world’s top three sports brands.

The Zeitz Museum of Contemporary Art Africa (Zeitz MOCAA) — Cape Town

In 2003, he insightfully signed 16-year-old future Olympic champion sprinter Usain Bolt to Puma.  In 2007, he was appointed to the Board of Harley-Davidson.

Puma was acquired by luxury goods conglomerate Kering in 2007, and a few years later Mr. Zeitz served as Kering’s Chief Sustainability Officer.  In 2011, he set up a sustainability committee for Harley-Davidson, which he also chaired.

Also in 2011, he wanted to step back and focus on his environmental work and resigned as CEO of Puma.  He became a director of parent company Kering and chairman of the group’s sustainability committee.  He co-founded ‘The B Team’ with Sir Richard Branson in 2013.  That same year he launched the Kenyan Segera Retreat with a focus on his foundation’s 4C philosophy for sustainable tourism.

In 2020, he was hungry for something much more and became Harley-Davidson’s interim president and CEO.

Jochen Zeitz — 1929 Gypsy Moth Airplane Photo credit: Eric M Rojas

On a personal level — he divorced his first wife Birgit Jöris in 2012 following an 18-year marriage.  He is currently married to LA-based producer Kate Garwood‚ 41‚ producer of the 2016 movie “Race”‚ about U.S. track star Jesse Owens.  They have two children; 4-year old Jesse born September 2017 and a three year old. He keeps homes in Switzerland, Santa Fe, Los Angeles, a 50,000-acre ranch in Kenya and has property in west London.

When researching material for this blog post, I was blown-away on the amount of information published about Mr. Zeitz.

In a 2013 interview with the International Bar Association, he stated no plans to marry again, although at the time he was in a long term relationship with Kate Garwood. He was adamant about no intention of having children. ‘No, definitely not,’ he stated emphatically. ‘Never say never, but it’s very unlikely. It’s not something that fits with my daily life and I’ve never believed that having children without a father around is a good idea. It’s not really something I would get excited about.’  Just a short four years later both occur.

Jochen Zeitz at Segera, his 50,000-acre ranch. Photo credit: David Crookes

In recent press interviews, he’s stated the joy of his decision to have children late in life, because now he can see them grow up versus having such a busy schedule in running a company and traveling for 10 months in a year.  An interesting side bar: Speculation swirled that Jesse, their first child, was named after the 1930s athlete and fueled by the fact that Jessie Owens was provided with shoes for the 1936 Olympics by the Dassler brothers‚ who went on to found Adidas and Puma. 

But, I’ve digressed and want to return to connecting the Harley-Davidson dots… Mr. Zeitz’s experience at Kering was a critical influence and the driving force behind Matt Levatich’s (the recently fired Harley-Davidson CEO) pivot to sustainability that led him to think much more about environmental profit and loss at Harley-Davidson.  Mr. Zeitz had devised an environmental profit-and-loss account method at Kering which, put a figure on what a company’s air pollution, land use, water use and carbon consumption cost the planet.

Jochen Zeitz’s Favorite Thing — A Scottish Bailey — Photo credit: Charlotte Haden

While Mr. Zeitz — wealthy, world-view philosophy, competitive, over-achiever and relatively young — has the luxury of carving out grandiose, acronym-fueled sustainable ‘visions’, that struggling businesses like Harley-Davidson, desperate to increase motorcycle sales, might find distracting or even an irritant.

We’ll have to read the biography when ex-CEO Levatich publishes the book, but as an outside observer, one distraction example is: it took eight years, millions of dollars and the work of over a thousand engineers to fully realize a product that few want — the Harley-Davidson LiveWire — the Milwaukee company’s first premium electric motorcycle to go on sale in September 2019.  As a long-serving Harley-Davidson board member, Mr. Zeitz convinced executive management to focus not just on the moral justification for electric engines, but on the needs of Harley-Davidson customers to have healthy natural landscapes in which to ride. The logic behind this claim, was that “what every rider loves about the ride – it’s the environment they’re riding in, isn’t it?”  Soon afterward, the marketing and brand alignment teams marched in unison to support sustainability as a major part of the brand.

Segera Retreat — Laikipia, Kenya

The result?  A new mission, twisting the brand’s historic celebration of freedom into a desire “to preserve and renew the freedom to ride” and TWELVE quarters of sales decline.  Along with a $2,152,500 million severance payment to Matt Levatich.

Mr. Zeitz believes and is on record, stating there is more to corporate life than the relentless pursuit of profit. Wait, what?!  Isn’t profit what got Matt Levatich fired?

I’ve watched “An Inconvenient Truth” and the sequel. The oceans are heating and the poles melting, but color me skeptical of environmental groups with sustainable-for profit-business interests.  We’re all too aware of what the world needs: another multi-millionaire telling others how to behave better once they have made their own fortune while flying private and choppering into a rich man’s playground.

Jochen Zeitz GQ Article — in German

The motor-head scholars, bankers, real estate agents, lawyers and fashion designers who gather not to drink cheap brew, but to sip $15 “born to be wild” martinis and straddle $40,000 motorcycles might pontificate on the value of sustainability, but I just don’t see grizzled leather-clad loyalists describing Harley-Davidson as the world’s most sustainable manufacture over a beer at the Sturgis rally.

But, sometimes there’s a man. I won’t say a hero – ’cause what’s a hero? – but sometimes there’s a man – and I’m talking about Jochen Zeitz here – sometimes there’s a man who, well, he’s the man for the time and place.

A man who will improve the brand that is unique, exciting and one that gives value to it’s riding customers.

But wait, there’s more… An incentive if he kicks a field goal… according to the company 8-K regulatory filing, the interim Harley-Davidson, CEO Jochen Zeitz, is eligible and will receive a $3 million bonus (in the form of restricted stock units (RSU’s)) that would vest one year after the grant date and become payable if his employment continues to the date of the installation of a new CEO.  That $3 million would come on top of the annual base salary of $2.5 million he is receiving now after taking over for Matt Levatich. I don’t think this will be too difficult since Mr. Zeitz has served on Harley-Davidson’s board since 2007.

UPDATED: April 17, 2020 — Due to the ongoing COVID-19 pandemic and sales impact, Harley-Davidson announced that its acting president and CEO Jochen Zeitz and the company’s board of directors would forgo any salary or cash compensations. As mentioned above, Zeitz currently has an annual base salary of $2.5 million.

Photos courtesy of Harley-Davidson, Jochen Zeitz, Twitter, Eric M Rojas, David Crookes, and Charlotte Haden

Information Source & References: IBA, Independent,Wired,Business Daily Africa, Milwaukee Business Journal, Adventure Rider, Infosys, Telegraph, Financial Times, Angama Blog

All Rights Reserved © Northwest Harley Blog

Read Full Post »

Harley-Davidson, Whiskey And Sustainability

'80's Vintage T-shirt Logo

As a motorcycle enthusiast you’ve likely changed or upgraded the mufflers on that stock Harley-Davidson.

Maybe even gone so far as to push it up a notch with a full exhaust upgrade, race tuner, cam and dyno tuning to live’n up the motor and eek out a few more ponies.  And wink, wink, nod, nod, I’m sure that EPA certified “cat” remained on the bike to reduce tailpipe emissions, right?

We all know that exhaust mods are a fine line in the environmental sand, yet most motorcycle enthusiasts if ask would state that they un-equivalently have a great appreciation for nature and their experiences with it on the open road.  Maybe even consider themselves “Green.”   I’m not talking about a raging tree-hugger environmentalist or “Hybrid Head” here, but someone who indeed cares about the environment and wants to do their stewardship part.  And by riding a fuel efficient motorcycle it qualifies to a degree to speak with some green conviction vs. the guzzler tax crowd. 

Could we do more?  Sure.  So, let’s talk about the environmental footprint of your favorite refreshment after a long day of riding the Harley-Davidson.

Whether it’s a beverage served on the rocks in a comfy biker bar or at home in a frosted mug or sipped from a flask with riding buddies around a campfire.  The production of whiskey and other spirits requires much more energy than wine or beer. In addition, the distilling process also makes a lot of waste.

If you recall in college 101 we learned that “liquor is quicker” than wine or beer. But producing it uses more energy, ounce for ounce, and nearly all the water that goes into the still emerges as waste.   So, if you’re fully committed to making a difference on this planet or maybe you’re just feeling guilty about that exhaust modification and want to know how the various spirits stack up so that you can do something about it.  Here is the invaluable information:

Whiskey: Single malt Scotch is made from only one grain source, while most American whiskeys are made from mixtures of rye, corn, wheat, or barley. So what’s the greenest? Most single malts are produced by boutique outfits using old-fashioned energy-hogging pot stills, as opposed to the more efficient column-style stills employed by major distillers. And while American bourbons are aged in virgin-oak barrels that are used only once, most of those barrels end up being reused by other liquor makers. Green Suggestion: Maker’s Mark.  The bourbon maker buys local grain and turns its waste into energy. Most of the company’s land is a nature preserve.

Vodka and Gin: Although some vodkas are still made from potatoes, most now come from a mix of grains. Ditto for gin. In terms of distillation, vodka requires more energy and water than most spirits. That’s because it’s distilled down to 95 percent ethanol—some ethanol plants even make vodka on the side—then diluted back to 40 percent. Gins are often made the same way. Green Suggestion: Square One vodka, which is organic and purchases one-quarter of its electricity from a local wind farm through renewable energy credits. TRU₂ gin uses lightweight bottles and recyclable corks, and plants a tree for each bottle it sells.

Rum: The mojito enabler is made from molasses or cane juice, and its fibrous leftovers can throw off the microorganism balance in waterways. In 2001, the EPA sued Bacardi for illegally dumping 3,000 gallons of this goop into a river near its Puerto Rico plant. (Many major distillers now treat their water.) Sugarcane is also a notoriously destructive crop, producing massive amounts of wastewater and greenhouse gases. Green Suggestion: Don Qrum. The Puerto Rico-based distiller turns its waste into compost and irrigation water, and uses excess steam from its treatment plant to help power the still.

Tequila: Tequila’s waste problem is as bad as rum’s. For every liter of tequila, you get about 11 pounds of pulp and 10 liters of vinazas, or acidic waste—which ends up befouling soil and water in Mexico’s Jalisco state, where most tequila comes from. Blue agave farmers, meanwhile, have used more and more pesticides since their crops were chewed up by insects during the 1990’s.  Green Suggestion: Casa Noble or 4 Copas, the first tequilas to be certified organic.

Beer: In 2008, New Belgium Brewing Company commissioned an environmental analysis (PDF) of its Fat Tire Amber Ale and found that refrigeration accounted for almost one-third of its overall greenhouse-gas emissions. Glass production was second, contributing 22 percent. Though aluminum production is an environmental disaster, cans beat bottles handily on the carbon front: Pablo Päster, a blogger and sustainability consultant, calculates that shipping cans rather than bottles results in 30 percent fewer emissions. And cans are recycled at significantly higher rates. Good news for your inner frat boy: Kegs are the most efficient vessels of all.  Green Suggestion: New Belgium. The Colorado-based company brews in superefficient kettles and is entirely powered by renewables.

Of course none of this is relevant unless taking into account greenhouse gas emissions and the water footprint to manufacture the product. So, to be fair it takes about 20 gallons of water to make a pint of beer and as much as 132 gallons of water to make a 2-liter bottle of soda.

There you have it.  A green guide to refreshments for your next motorcycle road trip.

Photo courtesy of eBay, H-D and Jack Daniels (’80’s vintage t-shirt).  Full Disclosure:  Author has no affiliation with any of the above listed spirits manufactures.   Don’t drink and ride.

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »