Swatch Group Investor Battle Heats Up After ISS Backs Activist
(Bloomberg) — The Swatch Group AG is facing renewed investor pressure after a key proxy adviser Institutional Shareholder Services recommended shareholders support a board candidate backed by a US activist.
Steven Wood, founder of Greenwood Investors, is pushing to be nominated as the representative of bearer shareholders on the board at the annual general meeting next month. ISS urged investors to vote for Wood, citing weak long-term performance and governance shortcomings, including a lack of board independence and the continued influence of the Hayek family on Swatch.
The endorsement follows a similar stance from Swiss proxy adviser Ethos Foundation, which backed Wood’s candidacy at last year’s meeting, citing concerns about governance.
Read more on Swatch and governance: Swiss Watch Giant Gets Bullish as Activist Pushes for Change
Swatch has said Wood is isn’t suitable as a representative of bearer shareholders, given only about 4% of what’s held by GreenWood Builders Fund IV is this type of stock. The company has instead proposed Andreas Rickenbacher to the board.
The endorsement marks a setback for Swatch, which has argued its structure reflects its Swiss identity and long-term strategy. Shares have fallen around 6% since the start of the conflict in the Middle East, though they are still up since the start of the year. Operating profit fell by more than half in 2025.
Greenwood welcomed the ISS recommendation, saying that Wood would bring “an independent expert with critical capital markets, industrial cross-border, and operational excellence skillsets.”
“Our proposals and candidate represent necessary first steps to rectifying governance shortcomings and addressing the stagnation at the company,” Wood said.
The outcome may hinge on Swatch’s voting structure, which has previously allowed the controlling Hayek family to block dissident nominees despite support from certain share classes.
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