The move, led by GreenWood founder Steven Wood, reflects growing dissatisfaction among shareholders following years of underperformance at Swatch. Wood is attempting to gain board representation for bearer shareholders, who hold the majority of the company’s capital but wield little voting power due to Swatch’s dual-share structure. The Hayek family, which retains about 44% of the group’s voting rights, continues to dominate decision-making.

Despite holding just 0.5% of Swatch shares, GreenWood is seeking to steer the company toward greater emphasis on its high-end brands like Breguet and Blancpain. However, with the Hayeks firmly in control, Wood’s chances of success appear limited. Swatch’s board has formally recommended shareholders vote against his nomination at the annual general meeting on Wednesday.

Swatch, still under the leadership of CEO Nick Hayek and chaired by his sister Nayla Hayek, has seen its once-stellar performance falter. Net profit plunged by 75% last year to 219 million Swiss francs ($240 million), a steep fall from the 1.6 billion francs it earned in 2013. Shares, once nearing 600 francs, have tumbled to under 150 francs, underlining investor discontent.

The group’s troubles have been compounded by weakening demand in China, a key market for Swiss watches. Sales fell nearly 15% in 2024, a decline that has also affected some luxury peers. Yet competitors like Richemont have weathered the downturn better, with modest gains in watch sales and a 20% rise in share value so far in 2025. In contrast, Swatch shares are down around 10% this year and currently represent the most shorted stock on the Euro STOXX 600 index, according to LSEG data.

Adding to the pressure, proxy advisory firms Institutional Shareholder Services and Glass Lewis have urged shareholders to vote against the re-election of Swatch’s supervisory board, citing concerns over governance and independence.

While few expect immediate changes at the AGM, the episode signals mounting pressure on Swatch’s leadership to respond to investor concerns. With a market value exceeding $9 billion, the company remains a heavyweight in the global watch industry. However, unless performance improves, shareholder activism could gain momentum in the months ahead.

CEO Nick Hayek has previously dismissed such pressures and has not ruled out taking the company private—a move that would eliminate external scrutiny but further entrench family control.