US investor Wood presents new proposals to overhaul Swatch board

U.S. investor Steven Wood renewed his marketing campaign to overhaul the board of Swatch Group, publishing six proposals to amend the Swiss watchmaker’s company governance, his agency InexperiencedWood Investors mentioned on Monday.

The proposals embrace permitting so-called bearer shareholders to elect three representatives to the board, mentioned InexperiencedWood, which says it holds about 0.5% of Swatch’s share capital. The bearer shareholders maintain a majority of the agency’s share capital, however not of voting rights.

Wood has been urgent Swatch to focus extra on its luxurious manufacturers corresponding to Breguet and Blancpain in an try to flip across the fortunes of the Swiss firm, whose shares have roughly halved in worth since early 2023.

Unlike with earlier plans, InexperiencedWood is not going to name a unprecedented assembly however search a vote at Swatch’s subsequent annual normal assembly.
In May, Wood failed in a bid to safe a seat on the corporate’s board as a bearer shareholder consultant, assembly resistance from the Hayek household, which controls over 44% of voting rights and a smaller chunk of the share capital.

Known for its plastic watches and luxurious manufacturers together with Omega, Swatch acknowledges bearer shareholders’ proper to illustration however disputes how they need to be chosen.

Wood argues shareholders ought to elect their very own as rival agency Richemont permits.

Asked about Wood’s proposals, a Swatch spokesperson mentioned the corporate had acquired a letter from InexperiencedWood.

“In it, GreenWood Investors informs us they will provide evidence that GreenWood meets the legal requirements for placing motions on the agenda of the next (AGM),” the spokesperson mentioned. “So far we have not received any such evidence.”