Swatch family Hayek faces test as investor presses to join board
Steven Wood, founder of U.S. firm GreenWood Investors, wants Swatch to focus more on its luxury brands such as Breguet and Blancpain, but to be elected to the board he must get past the Hayek family, which controls about 44% of Swatch voting rights.
GreenWood holds about 0.5% of Swatch shares and Wood is seeking to represent so-called bearer shareholders, which have a majority of the share capital, but not of the voting rights.
Swatch's board has recommended his bid be rejected when it holds its annual general meeting on Wednesday.
Jean-Philippe Bertschy, head of Swiss equity research at bank Vontobel, said the power of the Hayeks was likely to thwart Wood's bid. "The chances are very slim," he said.
Proxy advisers Institutional Shareholder Services and Glass Lewis have recommended Swatch shareholders vote against the re-election of Swatch's supervisory board, raising concerns about their independence.
Swatch is led by Chief Executive Nick Hayek, while his sister Nayla chairs the company that their father Nicolas helped create in the 1980s and built up into a global success story.
Swatch did not reply to a request for comment.
In late 2013, a year in which Swatch made net profits of over 1.6 billion Swiss francs ($1.9 billion), its shares were worth almost 600 francs. Last year, profit dropped by 75% to 219 million francs, and the stock now trades at less than 150 francs.
Swatch sales also slipped by nearly 15% last year, hit by sagging demand in China, which has also hurt luxury rivals like LVMH and Kering. Still, its Swiss peer and Cartier owner Richemont has retained its market appeal.
Richemont's watch sales ticked up slightly in 2024 and it has seen its shares rise almost a fifth so far this year. Swatch's stock is down by around 10% in 2025. Swatch is the most shorted stock on the Euro STOXX 600 index, according to LSEG data.
Bertschy at Vontobel said that although he did not expect major upheaval at the AGM, rising pressure could over the medium term open the door for changes at Swatch, which has a market capitalization of over $9 billion.
Even if shareholders ultimately gain some leverage, CEO Hayek has pushed back against market pressure and periodically said he could take the company private.
($1 = 0.8324 Swiss francs)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
13 minutes ago
- Reuters
Merz rejects reported EU plan to force rental firms to buy EVs from 2030
BERLIN, July 21 (Reuters) - German Chancellor Friedrich Merz on Monday criticised a reported draft EU plan to oblige car rental firms and large companies to buy only electric vehicles from 2030, saying it could contribute to destroying the bloc's important automotive industry. German tabloid Bild Zeitung had on Saturday reported that the EU Commission was considering the move, citing anonymous EU sources. Such corporate fleets make up about 60% of new car sales, it said. Merz said the proposals "completely miss the point of the current joint needs we have in Europe", noting the automotive industry was one of the region's core industries. "We must not allow it to be destroyed by focussing on technologies that might not be market-ready enough by a given date for one to rely exclusively on that single technology," he told reporters. "That's why we oppose such rigid specifications." "Europe is not open enough, not fast enough, not dynamic enough — and I want to help change that" he said. Germany has a right to help formulate the EU's strategic outlook given it finances a quarter of the bloc's budget, he said.
The Independent
14 minutes ago
- The Independent
Why millions of people could benefit from self-driving vehicles in the UK
A government minister has detailed the benefits of self-driving vehicles as a public consultation launches ahead of its roll-out in the UK next year. Launched today (July 21), the consultation on the automated passenger services (APS) permitting scheme will allow 'representative groups, industry stakeholders, trade unions and members of the public' to voice their opinions on how self-driving vehicles could be used. It comes ahead of the proposed roll-out of taxi-, private-hire- and bus-like services with self-driving technology from spring 2026, prior to the implementation of the Automated Vehicles Act in 2027. Lilian Greenwood, future of roads minister, said: 'Self-driving vehicles are one of the most exciting opportunities to improve transport for so many people, especially those in rural areas or unable to drive. We want to work with passengers and industry to make this new form of transport safe and accessible, as we take our next steps towards adoption. 'This technology doesn't just have the potential to improve transport for millions of people. It will help stimulate innovation, create thousands of jobs, and drive investment to put more money in people's pockets – all part of delivering our Plan for Change.' It follows on from a Government decision to 'fast-track' pilots of self-driving passenger vehicles to spring 2026, which would allow companies to pilot 'small-scale' services conducted without a safety driver monitoring the vehicle for the first time. Users would be able to book the service via an app, similar to a typical taxi or ride-hailing service. Key pointers for the consultation include how self-driving cars could be made more accessible for disabled and older people, and how 'services of self-driving vehicles are approved by councils'. The new consultation will run until September 28, 2025. When speaking on the roll-out of Self-driving taxis and bus-like services, transport Secretary Heidi Alexander said: 'The future of transport is arriving. 'Self-driving cars could bring jobs, investment, and the opportunity for the UK to be among the world-leaders in new technology. 'With road safety at the heart of our pilots and legislation, we continue to take bold steps to create jobs, back British industry and drive innovation.'
Reuters
15 minutes ago
- Reuters
Oil slips as little impact seen from EU sanctions on Russian crude
HOUSTON, July 21 (Reuters) - Oil prices fell on Monday as the latest European sanctions on Russian oil were expected to have minimal impact on supplies, but losses were curbed by investors weighing a potential drop in diesel supplies. Brent crude futures dropped 19 cents, or 0.3%, to $69.09 a barrel by 1:45 p.m. EDT (1745 GMT), while U.S. West Texas Intermediate crude slipped by 11 cents, or 0.2%, to $67.23. The European Union approved on Friday the 18th package of sanctions against Russia over itswar in Ukraine, which also targeted India's Nayara Energy, an exporter of oil products refined from Russian crude. "The market right now thinks that supply will still make it to market in one way, shape or another, there is not too much concern," said John Kilduff, a partner at Again Capital in New York. Kremlin spokesperson Dmitry Peskov said on Friday that Russia had built up a certain immunity to Western sanctions. The EU sanctions followed U.S. President Donald Trump's threats last week to impose sanctions on buyers of Russian exports unless Russia agrees to a peace deal within 50 days. ING analysts said the part of the package likely to have an effect is the EU import ban on refined products processed from Russian oil in third countries, though ING said that could prove difficult to monitor and enforce. Curbing some of crude's losses during afternoon trade on Monday were investor concerns around diesel supplies resulting from the sanctions package, analysts said. "As the day has gone on the diesel crack spread started to firm quite a bit, suggesting that the market cannot ignore the fact that any disruptions in Russian oil supply could tighten supplies of diesel and that seems to be giving us a bit of support today," said Phil Flynn, senior analyst with Price Futures Group. Low-sulphur gasoil futures were trading at a $26.58 per barrel premium to Brent crude at 1:45 p.m. EDT, up around 4% on the day. If prices hold near that level, it would be the highest close since February 2024. "We have a bit of room for error on the crude side, barrels can be shuffled around a bit but it is harder to shuffle around tight supplies of diesel," Flynn added. Iran, another sanctioned oil producer, is due to hold nuclear talks with Britain, France and Germany in Istanbul on Friday, an Iranian foreign ministry spokesperson said on Monday. That follows warnings by the three European countries that a failure to resume negotiations would lead to international sanctions being reimposed on Iran. In the United States, the number of operating oil rigs fell by two to 422 last week, the lowest total since September 2021, Baker Hughes said on Friday. "Oil-focused drilling is expected to remain at subdued levels through the balance of the year," StoneX analyst Alex Hodes said in a note on Monday. "We aren't anywhere close to prices that merit a significant pullback in investment though," Hodes added. U.S. tariffs on EU imports are set to kick in on August 1, though U.S. Commerce Secretary Howard Lutnick said on Sunday that he was confident the United States could secure a trade deal with the bloc. U.S. tariffs are potentially negative for oil demand and economic activity, Again Capital's Kilduff said. Some support may come from oil inventory data if it shows tight supply, said IG market analyst Tony Sycamore.
