Shareholders of Swatch Group decisively voted down a proposal by U.S. investor Steven Wood to join the company’s board, maintaining the Hayek family’s strong grip over the iconic Swiss watchmaker. At Swatch’s annual general meeting on Wednesday, 79.2% of votes cast opposed Wood’s nomination, effectively halting his effort to bring change from within.
Wood, founder of GreenWood Investors and a vocal advocate for strategic realignment, has been urging Swatch to concentrate more on its premium marques such as Breguet and Blancpain. His goal: to reverse the group’s lagging performance and restore its prestige within the luxury segment.
To succeed in his board bid, Wood needed the support of the Hayek family, which controls roughly 44% of Swatch’s voting rights. Unsurprisingly, the board had advised shareholders to reject his candidacy ahead of the vote, preserving the family’s long-standing influence over the brand founded by Nicolas Hayek in the 1980s.
Despite holding just 0.5% of Swatch shares, Wood positioned himself as a representative for bearer shareholders—those who own the majority of capital stock but possess limited voting power. Following the defeat, he claimed to have received encouraging backing from investors, industry insiders, and Swatch employees. He argued this underlined the growing demand for renewed leadership and independent voices on the board.
In a post-vote statement, Wood criticized the governance process and raised the possibility of requesting an extraordinary general meeting to ensure the rights of bearer shareholders are properly represented, in accordance with Swiss corporate law.
Swatch, in response, defended its conduct, stating that all shareholder motions had been executed in full compliance with legal standards.
Adding to the controversy, major proxy advisers Institutional Shareholder Services (ISS) and Glass Lewis had raised concerns about board independence and recommended shareholders vote against the re-election of certain supervisory members.
The leadership of Swatch remains firmly in the hands of the Hayek family. CEO Nick Hayek and his sister Nayla Hayek, who chairs the board, continue to steer the group amid declining financials. Once a beacon of Swiss industrial success, Swatch has seen its fortunes wane in recent years. From a high of 600 Swiss francs per share in 2013, the stock has slumped to below 150 francs today. Profits have fallen dramatically—from over 1.6 billion francs in 2013 to just 219 million last year, a 75% decline.
Sales slid nearly 15% in 2024, with weakness in the Chinese market dragging down performance—an issue mirrored by other luxury houses like LVMH and Kering. Yet, unlike Richemont, whose Cartier brand helped lift sales and share prices in early 2025, Swatch continues to struggle. Its shares are down approximately 10% this year, and it now holds the dubious distinction of being the most shorted stock on the Euro STOXX 600 index, according to LSEG data.
As investor pressure mounts and competitors outperform, Swatch faces increasing calls for modernization and strategic clarity—whether or not those voices ever reach the boardroom.
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