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Vail Resorts, the behemoth of the ski industry, has come under fire from activist investment firm Late Apex Partners (LAP), which today released a scathing letter to Vail’s Board of Directors, calling for urgent and transformational change. Late Apex, which has made Vail its largest investment holding, argues that the company has squandered its world-class assets and lost its way, eroding value for skiers, employees, and shareholders alike.
The investor’s central argument is clear: Vail has prioritized financial engineering over guest experience, and the results have been disastrous. Since 2019, Vail has spent $2 billion on capital expenditures and acquisitions, yet free cash flow (FCF) has declined by 15%, and guest satisfaction has plummeted. Once the industry leader, Vail now owns five of the six most recognized ski destinations in North America—yet not a single Vail resort made Ski Magazine’s 2024 Top 10 list.
The Case for Overhaul
LAP’s analysis identifies multiple systemic failures at Vail, including:
Executive Mismanagement: CEO Kirsten Lynch and CFO Angela Korch have overseen a dramatic decline in performance. Since Lynch’s appointment in 2021, Vail’s stock has dropped 47%, while the S&P 500 has gained 39%. Worse, Lynch has never purchased a single share of MTN stock, signaling a lack of faith in her own company.
Capital Misallocation: Instead of investing in much-needed infrastructure and guest experiences, Vail has recklessly pursued overseas acquisitions, like the costly buyout of Crans-Montana in Switzerland.
Dividend Overload: Roughly 90% of Vail’s free cash flow is paid out in dividends, leaving little flexibility for reinvestment. LAP is calling for an 80% dividend cut to free up resources for growth.
Erosion of Vail’s Brand: The ski community has widely labeled Vail the “Evil Empire”, thanks to its cookie-cutter management style and aggressive pricing. Ski patrol strikes, deteriorating customer service, and excessive crowds have fueled growing resentment.
What Needs to Change
LAP’s recommendations are aggressive but pragmatic. First and foremost, they want Lynch and Korch out. The firm argues that Vail needs a visionary CEO who understands the ski industry and can restore trust with customers and employees. Additionally, LAP wants a complete board refresh, including the resignation of long-time Chairman Rob Katz, whose continued involvement they see as a hindrance.
Beyond leadership changes, LAP envisions a fundamental strategic shift:
• More investment in North American resorts rather than empire-building overseas.
• A partnership-first growth strategy to expand the Epic Pass network without costly acquisitions.
• A cultural reboot to bring back authenticity to Vail’s mountain operations and reconnect with the core ski community.
• A focus on guest experience, with reinvestment into lifts, terrain expansions, and on-mountain improvements.
Read LAP’s letter to Vail here.
The Bottom Line: Vail Must Act Now
For years, Vail has been the undisputed giant of the ski industry. But as competition from Alterra’s Ikon Pass network grows, Vail’s dominance is no longer guaranteed. Late Apex Partners has delivered a stark warning: change course now or risk permanent decline.
With shareholder pressure mounting and the 2025 ski season fast approaching, all eyes are now on Vail’s boardroom. Will they heed the call for transformation, or will they double down on a strategy that has alienated their most loyal customers? One thing is certain—the future of the world’s biggest ski empire is at stake.
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