Swatch Shakes Up Executive Committee as Luxury Slowdown Persists

Swatch Group AG is shaking up its govt administration committee simply months after the watch and jewellery maker confronted investor requires improved company governance.

Chief controlling officer Peter Steiger, a 35-year veteran of the Biel, Switzerland-based firm, will retire and go away the group, based on an announcement Thursday.

Two executives — Damiano Casafina, chief govt officer of the corporate’s watch motion manufacturing firm ETA, and Sylvain Dolla, CEO of the Tissot model — have been elected to the manager group administration board, Swatch stated.

The modifications come as Swatch shares hit a 52-week low on June, 7 amid a downturn in demand for dear timepieces in mainland China and Hong Kong. The corporate’s revenue has additionally been impacted by a robust Swiss franc. Swatch inventory fell barely in early buying and selling Thursday however has fallen by about 18 % in 2024 in comparison with a 28 % acquire for Swiss rival and Cartier-owner Richemont.

Swatch’s chief govt officer Nick Hayek clashed with some traders and analysts on a raucous name in January amid criticism the household managed firm doesn’t have interaction sufficient with its shareholders.

Hayek, nonetheless, stated the maker of Omega and Longines watches and Harry Winston jewelry can not present particular person traders with privileged info. Swatch is within the enterprise of promoting “watches, not shares,” Hayek stated on the time.

Hayek and different members of the family personal about 25 % of the corporate’s fairness however management about 43 % of voting rights. The household and administration would favor to take the corporate non-public however don’t wish to tackle the debt required for a transaction and change into depending on banks or monetary establishments, Hayek has stated.

“Steiger was a robust persona and a key determine at Swatch Group, amongst different issues as chief controller and as head of the US enterprise, which has been extraordinarily profitable in recent times,” analysts at Zurich Cantonal Financial institution stated in a be aware.

Swatch elected Marc Hayek, who heads the Breguet and Blancpain watch manufacturers, to its board of administrators in Might signaling a possible successor to the present CEO.

By Andy Hoffman

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