The Financial Times reported on Saturday that American investor Steven Wood accused Swatch Group of having "worst in class governance" and suggested changes to the Swiss watchmaker's board and governance improvements.
According to the newspaper, Wood, the creator of GreenWood Investors, which claims to own roughly 0.5% of Swatch's share capital, has abandoned aspirations to become a board member and is pressuring the board to approve a number of reforms. Requests for comment from Reuters were not immediately answered by Swatch or GreenWood.
Wood told the FT, "I no longer think of the primary goal as going on the board and having a constructive relationship." "These are fresh actions to compel them to improve their worst in class governance."
On Monday, GreenWood Investors proposed six changes to Swatch's corporate governance, one of which would permit so-called bearer shareholders to choose three board members. The majority of the company's share capital is owned by bearer shareholders, however they do not have voting rights.
The Hayek family, which owns more than 44% of the voting rights and a lesser portion of the share capital, opposed Wood's attempt in May to gain a position on the company's board as a bearer shareholder representative.
According to the business, 79.2% of shareholders voted against Wood's election at the annual general meeting, and the board of Swatch recommended that his bid be denied.
Swatch, which is well known for its plastic watches and high-end brands like Tissot, Longines, and Omega, recognizes the right of bearer shareholders to representation but disagrees with the selection process.
Wood has been pressuring Swatch to concentrate more on its high-end brands, like Blancpain and Breguet, in an effort to improve the company's financial situation. Since early 2023, the value of Swatch's shares has decreased by over half.
