Swatch Group Faces Pressure for Governance Overhaul

U.S. investor Steven Wood criticizes Swatch Group's governance, suggesting board and policy reforms. Wood, leading GreenWood Investors, wants changes boosting bearer shareholders' board influence. Swatch's luxury brand focus is urged following declining stocks and market exclusion. Swatch disputes governance changes proposed by its stakeholders.

Steven Wood, a U.S. investor, has launched a critique against Swatch Group, labeling its governance as 'worst-in-class' and proposing comprehensive reforms to the board structure. Wood, who helms GreenWood Investors, is actively advocating for these changes despite owning a mere 0.5% stake in Swatch.

GreenWood Investors has previously attempted to secure a board position but faced rejection. Wood is now lobbying for six governance amendments, prioritizing enhanced rights for bearer shareholders, who control the majority of shares but lack equivalent voting influence. He cited the need for Swatch to refocus on its luxury brands to arrest its declining market position.

Swatch, responding to Wood's pressure, acknowledged receiving GreenWood's proposals, but is yet to validate their legitimacy in terms of meeting legal requirements. The Swiss watch giant, behind brands like Tissot and Omega, faces challenges including a plummet in stock value and being dropped from the Swiss Leader Index.

(With inputs from agencies.)