Swatch has been run by one family for decades – but now Nick Hayek jr.

Watch manufacturer Swatch may be listed, everyone in Switzerland knows who is actually in control: the Hayek family. Nick Hayek Junior has been a top man since 2003, after his father had led the group (including Omega and Longines) for years. The Hayeks have a quarter of the shares and almost half of the voting rights. Nick’s sister, Nicka, has been chairman of the Supervisory Board for fifteen years.

The Hayeks are perhaps the most influential business family in the country. But a conflict grows about their dominant role, it turned out this week. An activist shareholder claims a place in the Supervisory Board out of dissatisfaction. Highly remarkable for the Alpenland, and a rarely showed attack on the power of the Hayeks.

What’s going on?

Just a step back in time. In the early 1980s, the Swiss watch industry was dying due to the rise of cheap Japanese competition.

Nicolas Hayek, father of the current CEO and at the time a little -known consultant, was given the task of liquidating two conglomerates of remaining watch companies. Then Hayek did something surprising: he decided to set up production more efficiently, standardized parts and completely overhauled the design. Swatch was born.

Against all expectations it was a huge success. Nicolas Hayek received a kind of hero status in Switzerland. In 2003 his son Nick took over the daily management. But it has now seen sales decrease sharply in recent years, mainly because of a bleked Chinese demand. The race has halved since 2023.

Aha, investors probably don’t like that.

No. And there is more to play what she annoys. For example, there has been criticism of the way in which the family controls the company. In turn, Hayek Junior said earlier this year that he is considering taking the company’s company – apparently he finds the interference from outside especially annoying.

Last week an activist shareholder reported. Steven Wood, founder of investment fund Greenwood, said that he will submit a resolution to the shareholders’ meeting on 21 May to get a place in the Supervisory Board.

Such an open attack on the Hayek hegemony had never been shown, apart from the fact that this is unusual in Switzerland at all. According to Wood, among other things, the problem is that there are two types of shares, with different weightings at moods, which makes the influence of the family very large. According to him, the company is now « run for one shareholder. » Wood wants, among other things, that ‘normal’ investors get more information.

How did the family respond?

It is not happy. The Swatch board, led by Hayek Jr., published a statement against the resolution with a remarkable argument: Wood is not Swiss and does not live in Switzerland. For the company that is ‘important’.

According to the Financial Times In fact there are quite a few shareholders who agree with Wood. But given the great voting rights of the family, it seems illogical that it will be really exciting on May 21. You don’t just get the Hayeks staggering.

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