Swatch Group wins latest battle against activist investor
In a victory for the Hayek family, Swatch Group shareholders rejected a bid by GreenWood activist investor, Steven Wood, for a seat on the board yesterday.
Just last month, Institutional Shareholder Services (ISS) made the recommendation that shareholders should vote in favour of Wood, who has been pushing for better governance of Swatch Group for some time.
Wood’s main gripe is that he sees the governance of the Swiss watch group as being dysfunctional and unbalanced because of how dominated it is by the Hayek family. The Hayek family controls the company through its ownership of registered shares, which are a fifth of the face value of bearer shares, but with equal voting rights.
Wood believes that this family-centric control of the company encourages conservatism and resistance to open decision-making.
But yesterday, Wood, who owns about 0.5% of the Group, was rejected by 79.6% of the votes, with only 19.2% in favour.
Instead, the man who’s considered the establishment safe pair of hands, former Swiss government official, Andreas Rickenbacher, was elected, which was the Hayek family’s preference for some time.
“Andreas Rickenbacher’s profile and professional background are significant assets that will support the Group’s strategy,” said Swatch Group in a statement.
On Steven Wood’s failed attempt, the Group said: “This marks Mr. Steven Wood’s second consecutive defeat since 2025. For the second time, the shareholders have clearly rejected his election as the representative of the bearer shareholders on the Board of Directors.”
It’s unlikely that this will stop Wood, who was briefing journalists after the vote that he plans to pursue legal channels to prevent the status quo continuing.
