US Investor Pushes for Major Governance Shake-Up at Swatch as Calls for Board Reform Intensify

Investor pressure mounts on the iconic Swiss watchmaker as proposals for structural reforms and governance changes spark debate over leadership and long-term strategy.

U.S. investor Steven Wood has intensified his campaign for corporate governance reforms at Swatch Group, directing sharp criticism at the company’s leadership structure and urging a significant overhaul of its board as concerns grow over performance, strategy and shareholder representation across the global watchmaker’s operations.

Wood, founder of GreenWood Investors and a holder of a small but notable stake in the company, has abandoned plans to seek a direct seat on the Swatch board, shifting instead toward advocating for systemic reforms designed to strengthen accountability, expand representation and drive long-term strategic growth for the multinational watch manufacturer.

In comments shared with industry media, Wood said his latest moves reflect a shift in approach, emphasizing that his objective is no longer centered on joining the board but on prompting Swatch to update governance practices he described as outdated, restrictive and uncompetitive in today’s global corporate environment.

GreenWood Investors this week submitted six governance proposals aimed at reshaping the board’s structure, including new mechanisms that would give bearer shareholders enhanced rights through the election of three dedicated board representatives, a move that supporters argue would ensure broader and more equitable representation across the company’s ownership base.

Bearer shareholders, who hold the majority of Swatch’s share capital but lack proportional voting control, have long expressed frustration over the imbalance between ownership and influence, with many backing reforms designed to improve transparency, restore investor confidence and modernize the decision-making framework within the company.

Swatch acknowledged receiving correspondence from GreenWood and said it is awaiting formal documentation confirming that GreenWood meets the legal requirements necessary to submit motions for the company’s next annual general meeting, noting that no such evidence has been received to date and that review procedures remain underway.

Wood has repeatedly voiced concerns over Swatch’s strategic direction, arguing that the company should shift greater focus toward its luxury brands, including Breguet and Blancpain, in an effort to strengthen market performance, enhance brand visibility and better position the company within a competitive global luxury landscape undergoing rapid transformation.

Swatch has faced a challenging period in recent years, with its market capitalization dropping significantly and its share price declining by nearly half since early 2023, a downturn accelerated by slowing demand in key markets such as China and broader macroeconomic pressures affecting the global retail sector.

In November, the Swiss stock exchange operator SIX announced that Swatch will be removed from the Swiss Leader Index due to falling market value and reduced trading volumes, marking a symbolic shift in the company’s market standing and raising questions about its near-term outlook and investor engagement strategies.

Earlier this year, Swatch reported weaker-than-expected sales during the first half of 2025, highlighting continued pressure across several product categories and regions, particularly in Asia, where consumer demand has been more volatile than anticipated amid shifting economic conditions and fluctuating retail sentiment.

Wood previously attempted to secure election to the Swatch board as a bearer shareholder representative during the company’s annual general meeting in May, but the move was strongly opposed by the controlling Hayek family, which holds more than 44% of Swatch’s voting rights and maintains significant influence over corporate decisions.

Shareholders ultimately rejected his candidacy by a wide margin, with more than three-quarters voting against his appointment, underscoring ongoing divisions over governance practices, shareholder rights and the direction of strategic reform within one of Switzerland’s most recognizable global brands.

Swatch, known worldwide for its colorful plastic watches and luxury lines such as Omega, Longines and Tissot, has stated that while it recognizes the importance of bearer shareholder representation, it continues to dispute the mechanisms through which such representation should be determined, leaving the debate unresolved as investor demands gain momentum.