GreenWood Investors LLC has announced that Institutional Shareholder Services Inc. (ISS), one of the world’s leading independent proxy advisory firms, has recommended that shareholders of The Swatch Group AG vote in favor of GreenWood’s proposals and board nominee at the company’s upcoming 2026 Annual Meeting of Shareholders.
The annual meeting is scheduled to take place on May 12, 2026, and will include shareholder voting on several governance-related matters, including the nomination of Steven Wood, Founder and Chief Investment Officer of GreenWood Investors, to Swatch Group’s Board of Directors.
The endorsement from ISS represents a significant development in GreenWood’s campaign for governance reform at the Swiss luxury watchmaker. Proxy advisory firms like ISS play an influential role in shareholder voting decisions, particularly among institutional investors, pension funds and large asset managers. Their recommendations are closely watched during contested board elections and shareholder governance disputes.
GreenWood Investors said it welcomed ISS’s support, noting that the advisory firm recognized both the value of Steven Wood’s potential contributions to the Swatch board and the broader need for governance improvements within the company.
According to GreenWood, ISS concluded that Wood’s experience in capital markets, industrial operations, international business and operational transformation would provide the independent perspective currently lacking within Swatch’s boardroom. The investment firm believes these skills are especially important as Swatch faces mounting competitive pressures and investor concerns regarding performance and corporate oversight.
In its report, ISS stated that support for GreenWood’s director nominee is warranted given the company’s governance weaknesses and the need for greater board independence. The advisory firm described the nomination of Steven Wood as a constructive step toward improving oversight and rebuilding investor confidence.
ISS also emphasized that Wood would bring the viewpoint of an independent shareholder, which it described as particularly important at the current stage of the company’s development. According to the report, Swatch’s board would benefit from an outside perspective capable of balancing the influence of the founding family and strengthening governance standards.
The report further noted that Wood’s experience serving on public company boards across multiple European jurisdictions could help support governance reforms and improve investor trust in the organization.
Beyond supporting Wood’s nomination, ISS also recommended that shareholders back GreenWood’s governance proposals aimed at improving board independence and oversight at Swatch Group. The advisory firm argued that many of the company’s operational and financial challenges are closely linked to its governance structure.
ISS pointed to what it described as excessive concentration of influence within the founding family and limited independence among existing board members. According to the report, decision-making authority appears heavily centralized among a small group of family representatives, while other directors have not demonstrated sufficient independence or industry expertise to effectively oversee management.
The report also criticized the long tenures of several current directors, suggesting that a lack of fresh perspectives may have contributed to weak oversight and limited strategic adaptation in recent years.
Swatch Group, one of Switzerland’s most recognized luxury watch manufacturers, owns a broad portfolio of watch and jewelry brands operating across various market segments. However, the company has faced increasing challenges over the past decade, including changing consumer trends, intensifying competition within the luxury sector and evolving global retail dynamics.
ISS highlighted several performance concerns in its assessment of the company. According to the advisory firm, Swatch’s position within the global luxury watch market has weakened significantly compared to a decade ago.
The report noted that the company’s share of Swiss watch exports has declined substantially over the years. While Swatch once accounted for more than 40 percent of Switzerland’s watch exports, that figure has reportedly fallen to below 25 percent in the latest reporting period.
In addition to declining market share, ISS pointed to revenue weakness, lower profitability and deteriorating shareholder returns. The advisory firm observed that the company’s revenues have fallen to their lowest levels in approximately a decade, excluding the temporary disruption caused by the COVID-19 pandemic in 2020.
Operating margins were also described as being at multi-year lows and among the weakest compared with industry peers. Total shareholder returns, another key performance metric, have similarly declined over time, contributing to growing investor dissatisfaction.
GreenWood Investors argues that governance reform is necessary to help reverse these trends and position Swatch for renewed long-term growth. The firm believes that stronger board independence, enhanced oversight and broader strategic expertise are critical for restoring competitiveness and rebuilding market confidence.
Steven Wood said the support from ISS represents an important endorsement of GreenWood’s efforts to improve governance standards at Swatch Group. He noted that ISS has previously highlighted governance concerns at the company and expressed appreciation for the advisory firm’s recognition of the need for change.
Wood stated that GreenWood’s proposals and his nomination should be viewed as essential first steps toward addressing what the firm sees as years of stagnation within the organization. He emphasized that shareholder participation in the upcoming vote will be critical to achieving meaningful governance reform.
According to Wood, shareholders should carefully consider ISS’s recommendation that supporting the dissident nominee would help strengthen oversight and restore investor trust in the company.
Support for Wood’s candidacy has also come from outside the investment community. Raul Galamba, Chairman of CTT Correios de Portugal, commented on Wood’s role within the company’s own boardroom and operational transformation efforts.
Galamba credited Wood with playing a significant role in helping CTT evolve from a traditional postal operator into a modern logistics business. He described Wood as bringing strong industrial expertise, operational insight and a collaborative approach to board leadership.
GreenWood believes that similar experience could help Swatch navigate the evolving luxury market and improve operational performance over time.
The shareholder vote comes amid broader global discussions about corporate governance, board accountability and shareholder rights, particularly within family-controlled companies. Investors are increasingly demanding stronger board independence, improved transparency and more robust oversight structures as part of long-term value creation strategies.
Proxy advisory firms such as ISS and Glass Lewis have become increasingly influential in these debates, often shaping the outcomes of contested board elections and governance proposals.
GreenWood Investors has urged Swatch shareholders to follow ISS’s recommendations and vote in favor of Steven Wood’s board nomination and the firm’s governance initiatives at the upcoming annual meeting.
The results of the vote may signal how investors view the future direction of Swatch Group and whether shareholders believe governance reform is necessary to address the company’s recent operational and financial challenges.
As the luxury watch industry continues evolving amid shifting consumer preferences and increased global competition, the outcome of the annual meeting could have important implications for Swatch’s leadership structure, strategic direction and long-term investor confidence.
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