Shareholders of Swatch Group have rejected an attempt by activist investor Steven Wood to secure a seat on the company’s board, reinforcing the control of the founding Hayek family over the business.

At the company’s annual general meeting in Switzerland, investors voted against Wood’s appointment as an independent director, with nearly 80% of votes opposing the proposal, according to people familiar with the meeting, News.Az reports, citing Reuters.

Wood, whose GreenWood fund owns around 0.5% of Swatch shares, had campaigned for governance reforms and greater representation for minority shareholders. His bid was supported by proxy advisory firms ISS and Glass Lewis.

Instead, shareholders elected company-backed nominee Andreas Rickenbacher to the board. Despite representing continuity, Rickenbacher becomes the first independent director added to the board in 16 years.

Swatch shares rose following the vote, extending earlier gains.

The company’s dual-class share structure has long enabled the Hayek family to maintain strong voting control despite holding a smaller share of total equity. The family reportedly controls more than 40% of voting rights while owning about a quarter of the company’s equity.

Among bearer shareholders — typically outside investors and institutions — support for Wood was significantly higher, with more than 80% reportedly voting in his favor.

Wood had also submitted several governance proposals aimed at increasing board independence, strengthening minority shareholder rights, and limiting executive concentration of power. Shareholders rejected all of the proposals.

The vote highlights ongoing investor concerns over governance and strategy at Swatch, whose shares and earnings have struggled in recent years amid weaker demand in key markets such as China and intensifying competition in the luxury watch sector.

News.Az 

By Aysel Mammadzada