ZURICH (Reuters) -U.S. investor Steven Wood renewed his campaign to overhaul the board of Swatch Group, publishing six proposals to amend the Swiss watchmaker’s corporate governance, his firm GreenWood Investors said on Monday.
The proposals include allowing so-called bearer shareholders to elect three representatives to the board, said GreenWood, which says it holds about 0.5% of Swatch’s share capital. The bearer shareholders hold a majority of the firm’s share capital, but not of voting rights.
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.
Unlike with earlier plans, GreenWood will not call an extraordinary meeting but seek a vote at Swatch’s next annual general meeting.
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.
Known for its plastic watches and luxury brands including Omega, Swatch acknowledges bearer shareholders’ right to representation but disputes how they should be chosen.
Wood argues shareholders should elect their own as rival firm Richemont allows.
Asked about Wood’s proposals, a Swatch spokesperson said the company had received a letter from GreenWood.
“In it, GreenWood Investors informs us they will provide evidence that GreenWood meets the legal requirements for placing motions on the agenda of the next (AGM),” the spokesperson said. “So far we have not received any such evidence.”
(Reporting by Oliver Hirt; Editing by Conor Humphries)
