ISS Recommends The Swatch Group AG Shareholders Vote FOR GreenWood’s Director Nominee and Governance Proposals for the Company’s 2026 Annual Meeting of Shareholders

NEW YORK--(BUSINESS WIRE)--GreenWood Investors LLC (“GreenWood”), today announced that Institutional Shareholder Services Inc. (“ISS”) the leading independent proxy advisory firm, has recommended The Swatch Group AG’s (“Swatch”) shareholders vote “FOR” Steven Wood's board nomination and GreenWood’s governance proposals at Swatch’s Annual Meeting of Shareholders, scheduled for May 12, 2026.

GreenWood is pleased that the ISS recognized that Steven Wood's nomination will enhance the Swatch Board by adding an independent expert with critical capital markets, industrial cross-border, and operational excellence skillsets, while the GreenWood governance proposals would add significant value and independent oversight to the Swatch Board.

In its report, ISS affirmed the case for Steven Wood's nomination, stating:

“Overall, given the company’s governance shortcomings and the clear need for a more independent, outside perspective at the board level, support for the dissident nominee is warranted. A vote FOR the dissident director [Steven Wood] represents a constructive step toward improving oversight and rebuilding investor trust.”

ISS notes regarding Steven Wood's nomination that “…[Steven] would impart the perspective of an unaffiliated shareholder. This is most critical at this stage, as the board needs an unquestionably independent voice to counteract the influence of the expertise and public company board experience across multiple European jurisdictions, which would be valuable in helping to restore investor confidence and drive much-needed improvements in governance."

ISS continued by recommending the need for governance change at Swatch:
“It is difficult to separate the company’s issues with performance from its governance deficiencies. The sub-optimal governance setup is exemplified by the significant influence of the founding family and the lack of independence at the board level. Decision-making is concentrated within a small group of founding family members, and it appears that the remaining directors, who generally have limited industry experience and long tenures, have not been willing or able to effectively oversee management.”

ISS underscored its conclusion that change is warranted as Swatch, stating that: “UHR has lost its luster as a leading player in the luxury watch segment. The company went from accounting for more than 40 percent of Switzerland's watch exports a decade ago, to less than 25 percent in the most recent reporting period. Revenue has declined to a decade-low level (excl. a 2020 dip due to the pandemic), operating margin is also at a multi-year low and the worst among peers, and TSR has deteriorated.”

Steven Wood, Founder and CIO of GreenWood Investors, stated, “We are extremely grateful to have received strong votes of confidence from ISS today, which has long pointed out governance deficiencies at Swatch. Our proposals and candidate represent necessary first steps to rectifying the governance shortcomings and finally addressing the stagnation that has occurred at the Company in recent years. However, for this to become a giant leap, we need shareholders to ensure they vote their shares. They will be well guided by following ISS's advice that ‘A vote FOR the dissident director represents a constructive step toward improving oversight and rebuilding investor trust.’”

Mr. Raul Galamba, Chairman of CTT Correios de Portugal, noted Steven’s influential role in the CTT boardroom stating, “Steven has been central to CTT’s industrial transformation from a legacy operator into a modern logistics leader. His hands-on role in our operational turnaround proves he brings deep industrial insight and a collaborative, results-driven mindset to the board.”

GreenWood urges Swatch shareholders to follow the ISS recommendations and vote “FOR” Steven Wood, which is 5.1.2 and 5.2.i listed under Proposal 5.

In addition, GreenWood asks Swatch shareholders to vote "FOR" all of GreenWood's shareholder proposals 9.1-9.6, listed under Proposal 9.

More GreenWood materials can be found at: https://www.gwinvestors.com/swatchs-2026-agm-correcting-the-invitation/


About GreenWood Investors LLC

GreenWood Investors is an investment manager founded in 2010 by Steven Wood to engage and invest with great managers building under-appreciated companies. The firm partners with management teams during transformational moments in their history to help them accelerate their ability to drive long-term, sustainable value. The firm employs a concentrated, value-oriented global equity investment approach and its strategy is to perform deep diligence and develop relationships with key industry leaders who help to improve outcomes for all stakeholders.

Contacts

GreenWood Investors
Josh Pesses
info@gwinvestors.com

Georgeson
Matthias Nau / Christian Papp / Sara Abbasi
matthias.nau@georgeson.com / Christian.Papp@georgeson.com / sara.abbasi@georgeson.com