Swatch investor takes aim at family behind Omega and Longines

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Steven Wood, an investor in the Swatch Group, says that the struggling Swiss Watchmaker is “only managed for a shareholder”, because he has campaigned to be elected on the board of the family-controlled organization.

In an interview with the Founder and Chief Investment Officer of New York -based Greenwood Investors, Wood Financial Times, the team behind Omega, Harry Winston and Bregaate “is involved in a situation where minority shareholders’ rights are being ignored.”

Comments are criticized by a thin screen of the Hayek family, which owns 25 percent of the swatch shares, but controls 44 percent of the voting rights. Swatch founder Nicholas Hayek’s son Nick Hayek Jr. has served as the chief executive for 25 years. His sister Naila has been chaired by the board for 25 years.

Greenwood, which owns about 0.5 percent share of the company about SWF 37 MN, presented a resolution to be selected on the Wood Board at the Company’s Annual General Meeting on May 21.

The Hayek family has been under pressure for years, which has repeatedly persuaded CEO Nick Hayek to increase the chances of the company to be private. Swatch last year SWF 219 MN was reduced to 75 percent in net profit.

Wood says, “Dejecting is the eye -catching.” It was once in a lifetime opportunity of luxury space, “he said.

Wood’s promotion is a rare example of shareholder activism in Switzerland, where many companies are controlled by strong families.

Swatch has a dual class of share structures. The Hayek family has most registered shares, which carry more votes than the bearers, of which many are in the hands of institutional investors. Wood bearers want to act as a representative for share holders, which represents 55 percent of the switch share capital.

Wood described himself as “constructive” than an employee. He wants investors to be more publicly contacted, he has also followed the Italian-list space and defense group Leonardo, where he has served on the board since 2021.

According to Jean-Philip Bertshi, the chief of the Swiss equity research of Vontobelle, Wood combines many ideas with analysts and shareholders.

“All investors agree with what he said. It is the best thing to do with the Hayek family a little healthy on the family,” he said.

Swatch board has suggested voting against Wood’s resolution for several reasons, including that he is not Swiss and not in the country, the Including Agency has said that the former President of Swiss National Bank, Jean-Pierre Roth, who has served on the Swachh board for 25 years, has been the nominee of the Swach.

The Swiss Proxy Group Ethos Foundation, which represents the Swiss Pension Fund and has earlier expressed concern over the Swatch corporate administration, suggested vote in favor of Wood’s elections.

However, another proxy agency, ISS, shareholders advised to vote against Wood’s elections because he did not keep the compulsory case. Most of the ISS investors advised the board directors to vote against the re -election that the company failed to establish an independent board.

Swach did not allow its carrier shareholders to select the registered shareholders without inputing their board representatives. According to Wood, it is a violation of their rights under Swiss law.

Swatch says it will confirm that the proposal has been dealt with in the AGM in a legally proper manner and has worked in full consent with all national laws and regulations.

Wood said that Orbis Investment Management, which owns 1 percent of the share in Soch, supported him.

However, if the Hayek family succeeded in blocking Wood’s appointment on the board this month, he would consider five percent shareholder to seek the need for the support to be able to call a remarkable general meeting.

He will only use it for a separate vote to be elected as a representative of their board among the switch carrier shareholders.

“There are many different ways that can take it,” he said. “The 21st May is not the end of the story.”