Swatch Under Pressure: Could an American Activist Finally Wake Up the Group's Sleeping Giants?
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Zurich, May 2025. Swatch's annual general meeting could have been an uneventful affair, frozen in a governance structure as stable as it is impenetrable. But one name, Steven Wood, came to disrupt the game. This American investor, unknown to the general public but well-established in activist finance circles, tried, unsuccessfully, to get elected to the board of directors of the Biel-based giant. Rejected. Brutally. But he has no intention of stopping there.
Holding just 0.5% of bearer shares, Steven Wood does not have the clout of a pension fund, but he has a clear idea: Swatch Group is structurally undervalued, poorly governed, and its most prestigious brands are being run at the bare minimum.
In an interview with the Frankfurter Allgemeine Zeitung, he claims that his failed election is legally non-compliant and is threatening to demand an extraordinary general meeting. The goal: to bring a series of points back to the table to “improve the group's management.”
This is not a personal whim. Steven Wood claims a real track record in the luxury sector, stating he was a long-term investor in Ferrari, where he “blended into the ecosystem” to understand the drivers of success. He is also a board member of the Italian defense group Leonardo.
In his eyes, Swatch Group, with brands like Breguet, Blancpain, and Harry Winston, holds some of the finest watchmaking names in the world, but does not know how to leverage them. The problem? Overly rigid governance, outdated communication, a total lack of a digital strategy worthy of the name, and a deficit in UHNWI client culture. These three houses should, on paper, be titans of the haute horlogerie segment. Yet, their presence is almost ghostly in the face of relentless offensives from Richemont, LVMH, or even Audemars Piguet.
Steven Wood asserts that they need to “be more aggressive in appealing to wealthy clients,” and he is right. While Cartier, Bulgari, or even Hublot saturate social media, Breguet remains silent, hidden behind its past, and invisible to young collectors.
Wood's central argument is simple: the current market value of Swatch represents only half of its book value. A gulf that, in his view, signals a structural mistrust from the market toward current management. He acknowledges that Nick Hayek is indispensable, but criticizes the lack of a COO, structure, and a clear strategic direction. Swatch certainly has assets: unique industrial expertise, strong brands, and a global presence. But without a clear course, these strengths become inertia. The group lags behind in digital sales, CRM, social media, image, influencers, content, and customer experience. Nothing is being done to build modern storytelling around its gems.
This is not just friction. It might be the beginning of a wake-up call that many have been hoping for for years. If Steven Wood manages to mobilize other shareholders, or secure symbolic support from Swiss or foreign institutional investors, he could force the hand of a group that has been turned inward for too long.
The watch industry is entering an era of analysis, evaluation, and transparency. And Swatch will no longer be able to shield itself from these dynamics. The irony is that it may have taken an American, who fell in love with Ferrari, to offer hope of waking up Breguet.
If you found this article interesting, you can also discover the Mid-2025 economic report on Swiss watchmaking.
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