Shareholder of Vail Resorts pushes for executive overhaul, including removal of CEO

A Pow day at Park City Mountain after receiving 23 inches of snow in 24 hours in February of 2023. Photo: Courtesy of Vail Resorts / Kyler Tingey.

PARK CITY, Utah – An investment firm holding a stake in Vail Resorts, Inc. (NYSE: MTN) has publicly called for sweeping changes to the company’s leadership and strategy, citing what it describes as years of underperformance. In a letter to Vail’s board of directors, Late Apex Partners (LAP) criticized CEO Kirsten Lynch and CFO Michael Barkin. (Editor’s Note: Angela Korch is the current CFO of Vail Resorts.) , and Executive Chairman Rob Katz for what it claims is a mismanagement of operations, capital allocation, and customer experience.

The firm, which did not disclose the size of its stake, said Vail’s performance over the last five years has been unacceptable, with shares losing 47% of their value during that time. LAP presented a plan it says could increase Vail’s valuation by 140%, targeting $400 per share, if the board acts decisively.

Public criticism of Vail Resorts sharply increased over the 2024 holiday period when the Park City Ski Patrol went on strike over unfair labor practices. As crowds of holiday guests at Park City Mountain experienced what they described as extremely limited access to terrain and hours long lift lines, they were outspoken about the debacle, which made national news headlines.

This event sparked a class action lawsuit against Vail Resorts, Inc. from its unhappy clientele and also cast into light broader criticism of the publicly-traded company.

Key Criticisms

LAP’s letter outlines several issues, including:

• Inadequate leadership: The firm accused Lynch and Korch of overseeing value destruction and failing to align executive incentives with shareholder interests. It also noted Lynch has never purchased Vail shares since becoming CEO in 2021.
• Poor capital allocation: LAP said the company has spent $2 billion on capital expenditures and acquisitions since 2019, while free cash flow has declined 15%.
• Balance sheet mismanagement: A high dividend payout—90% of free cash flow—has limited Vail’s ability to reinvest in customer experience and strategic initiatives, the firm claims.
• Brand erosion: The firm said Vail’s centralized marketing strategy has alienated the core skiing community, leading to its perception as the “Evil Empire.”

Proposed Changes

LAP outlined several steps it says are necessary to reverse the company’s fortunes, including:

1. Leadership overhaul: Replacing Lynch and Korch with leaders experienced in innovation and resetting the company’s direction.
2. Board restructuring: Calling for Katz to step down as Executive Chairman, citing his diminished role and extensive stock sales.
3. Dividend cuts: Reducing the dividend by 80% to focus on reinvestment, balance sheet repair, and share buybacks.
4. Strategic partnerships: Expanding the Epic Pass partnership network to drive growth without costly acquisitions.
5. Realigning incentives: Linking insider compensation to free cash flow and long-term value creation.

Future Potential

LAP said it believes Vail’s assets, heritage, and potential remain unparalleled in the ski industry. “Ultimately, this is about Vail returning to its mission—to create the experience of a lifetime for employees and guests,” the letter stated.

LAP’s letter was accompanied by a detailed presentation and made publicly available to facilitate discussions with Vail’s board and shareholders.

Vail Resorts has not yet issued a response to the letter.