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Swatch’s governance faces further challenge

Fresh push by shareholder activist raises debate over board

What makes a good board director? At Swatch Group, the question has taken on fresh relevance.

The Swiss-listed watchmaker sits at the centre of a governance debate amid a battle over board representation. The company owns some of the best-known names in the industry, from Omega and Longines to Breguet and Tissot. It helped rescue Swiss watchmaking in the 1980s and remains a symbol of industrial Switzerland.

It also has been struggling. Its shares have fallen by more than 40 per cent in the past decade, although they are up about 6 per cent since the start of the year. Net profit plunged almost 90 per cent last year to just SFr25mn — on top of a 75 per cent drop in 2024. Morgan Stanley has estimated the company has lost market share in some areas — although the company has strongly disputed the bank’s figures.

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