Swatch Group is under pressure as activist investor Steven Wood pushes for changes in the company’s leadership. Wood, the founder of GreenWood Investors, is calling for board representation on behalf of bearer shareholders. These shareholders hold most of Swatch’s capital but have limited voting rights because of the firm’s dual-share system.
The Hayek family controls about 44% of the company’s voting rights and continues to dominate key decisions. Wood’s campaign reflects rising frustration among shareholders after several years of poor financial performance.
Although GreenWood owns only 0.5% of Swatch shares, it wants the company to focus more on its luxury watch brands, such as Breguet and Blancpain. But with the Hayeks in control, the push for change may not succeed. Swatch’s board has advised shareholders to vote against Wood’s nomination at the company’s annual general meeting (AGM) on Wednesday.
Swatch is led by CEO Nick Hayek, with his sister Nayla Hayek serving as chair of the board. Under their leadership, the company’s profits have sharply declined. In 2023, net profit dropped by 75% to 219 million Swiss francs ($240 million), down from 1.6 billion francs in 2013. The company’s share price has also suffered, falling from nearly 600 francs to below 150 francs. This decline has raised concerns among investors.
Weak demand in China, one of Swatch’s key markets, has added to the company’s difficulties. Sales in China fell by nearly 15% in 2024. While other luxury brands have also faced challenges, some competitors have held up better. Richemont, for example, posted gains in watch sales and saw its stock rise by 20% in 2025. In contrast, Swatch shares have dropped by about 10% this year and are now the most shorted stock on the Euro STOXX 600 index, according to data from LSEG.
Further criticism has come from proxy advisory firms. Both Institutional Shareholder Services and Glass Lewis have advised shareholders to vote against re-electing Swatch’s supervisory board. They raised concerns about board independence and overall governance.
Though few expect major changes at the upcoming AGM, the pressure on Swatch’s leadership is increasing. The company, with a market value of over $9 billion, remains a key player in the global watch industry. But unless performance improves, shareholder activism could grow stronger.
CEO Nick Hayek has largely dismissed these calls for change. He has even suggested that Swatch might go private in the future. This move would reduce external pressure but would also give the family even more control over the company’s direction.
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