Swatch external store sign
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U.S. investor Steven Wood accused Swatch Group of “worst-in-class governance”, proposing changes to the Swiss watchmaker’s board and governance reforms, the Financial Times reported on Saturday.
Wood, the founder of GreenWood Investors, which says it holds about 0.5% of Swatch‘s share capital, has ditched plans to gain a board seat and is pushing the board to adopt a package of reforms, the newspaper said.
Swatch and GreenWood did not immediately respond to Reuters requests for comment.
“I no longer think of the primary goal as going on the board and having a constructive relationship,” Wood told the FT. “These are new moves to force them to evolve their worst-in-class governance.”
GreenWood Investors made six proposals on Monday to amend Swatch’s corporate governance, including allowing so-called bearer shareholders to elect three representatives to the board. The bearer shareholders hold a majority of the firm’s share capital but not of its voting rights.
In May, Wood failed in a bid to secure a seat on the company’s board as a bearer shareholder representative, meeting resistance from the Hayek family, which controls over 44% of voting rights and a smaller chunk of the share capital.
Swatch’s board recommended Wood’s bid be rejected, and the company said 79.2% of shareholders voted against his election at the annual general meeting.
Known for its plastic watches and luxury brands including Tissot, Longines and Omega, Swatch acknowledges bearer shareholders’ right to representation but disputes how they should be chosen.
Wood has been pressing Swatch to focus more on its luxury brands such as Breguet and Blancpain in an attempt to turn around the fortunes of the Swiss company, whose shares have roughly halved in value since early 2023.
