Swatch shareholder vote tests Hayek grip after advisers back Wood

• Proxy advisers recommended voting for Wood and against re-electing CEO Nick Hayek, Chair Nayla Hayek, and two other directors, citing an average board tenure of 20 years and lack of succession planning
• Swatch reported an 89% drop in net profit last year, and its stock remains near historic lows despite a 25% gain in 2025, significantly underperforming rivals
• Wood submitted six proposals to increase minority shareholder rights and argues the board needs renewal similar to governance changes at peers Richemont and Kering

Swatch Faces Shareholder Showdown Over Governance and Hayek Family Control

Swiss watchmaker Swatch confronts a critical shareholder vote on Tuesday as proxy advisers ISS and Glass Lewis back investor Steven Wood's board election bid, challenging the Hayek family's decades-long grip on the struggling company.

Key Players and Positions:

Wood, supported by major proxy advisers, is pushing for board renewal and better succession planning. Swatch management opposes his candidacy, instead proposing Swiss economist Andreas Rickenbacher. The Hayek family—controlling over 40% of voting rights through dual-class shares despite owning just 25% of equity—is expected to retain control.

Financial Performance:

Swatch reported an 89% drop in net profit last year and has significantly underperformed competitors. While shares have gained 25% year-to-date, they remain near historic lows, reflecting years of declining profitability.

Governance Concerns:

The board's average tenure stands at approximately 20 years. Glass Lewis has recommended voting against the re-election of CEO Nick Hayek (71), Chair Nayla Hayek (74), her son Mark Hayek, and director Ernst Tanner. Wood argues the company needs fresh leadership similar to changes at rivals Richemont and Kering, plus clearer succession planning for the aging leadership.

Wood has submitted six proposals to increase minority shareholder rights, which Swatch has rejected, stating no bylaw changes beyond Swiss legal requirements are necessary.

Market Implications:

Even if Wood's election fails, strong investor support could pressure management toward incremental reforms. ISS called Wood's appointment "a constructive step toward improving oversight and rebuilding investor trust." The vote underscores growing dissatisfaction with governance at family-controlled companies underperforming their sectors.