U.S. investor Steven Wood is stepping up his efforts to reshape the board of Swatch Group.
He has released six proposals aimed at reforming the Swiss watchmaker’s corporate governance, according to his firm, GreenWood Investors.
The proposals involve allowing bearer shareholders to elect three representatives to the board. GreenWood holds around 0.5% of Swatch’s share capital, while bearer shareholders control a majority of the firm’s share capital but lack significant voting rights.
Wood has emphasized the need for Swatch to concentrate more on its luxury lines, such as Breguet and Blancpain. This shift aims to improve the financial standing of the Swiss company, which has seen its shares decline by nearly half since the beginning of 2023.
Unlike previous attempts, GreenWood will not call for an extraordinary meeting. Instead, they will pursue a vote at Swatch’s upcoming annual general meeting.
In May, Wood’s endeavor to gain a seat on the board as a representative for bearer shareholders faced challenges from the Hayek family, which possesses over 44% of the voting rights as well as a substantial share of the capital.
Renowned for its plastic watches and luxury brands, including Omega, Swatch recognizes the rights of bearer shareholders to representation. However, the company contests the method by which these representatives should be chosen.
Wood contends that shareholders ought to select their representatives, as is the practice at competing firm Richemont.
In response to inquiries regarding Wood’s suggestions, a spokesperson from Swatch stated that they had received communication from GreenWood.
“In it, GreenWood Investors informs us they will provide evidence that they meet the legal requirements for placing motions on the agenda of the next AGM,” said the spokesperson. “So far we have not received any such evidence.”
