ZURICH (Reuters) - The family that dominates Swatch Group faces an unusual test on Wednesday when an American investor tries to secure a place on the Swiss watchmaker's board, bidding to shake up its performance after a slide in its fortunes.

Steven Wood, founder of U.S. firm GreenWood Investors, wants Swatch to focus more on its luxury brands such as Breguet and Blancpain, but to be elected to the board he must get past the Hayek family, which controls about 44% of Swatch voting rights.

GreenWood holds about 0.5% of Swatch shares and Wood is seeking to represent so-called bearer shareholders, which have a majority of the share capital, but not of the voting rights.

Swatch's board has recommended his bid be rejected when it holds its annual general meeting on Wednesday.

Jean-Philippe Bertschy, head of Swiss equity research at bank Vontobel, said the power of the Hayeks was likely to thwart Wood's bid. "The chances are very slim," he said.

Proxy advisers Institutional Shareholder Services and Glass Lewis have recommended Swatch shareholders vote against the re-election of Swatch's supervisory board, raising concerns about their independence.

Swatch is led by Chief Executive Nick Hayek, while his sister Nayla chairs the company that their father Nicolas helped create in the 1980s and built up into a global success story.

Swatch did not reply to a request for comment.

In late 2013, a year in which Swatch made net profits of over 1.6 billion Swiss francs ($1.9 billion), its shares were worth almost 600 francs. Last year, profit dropped by 75% to 219 million francs, and the stock now trades at less than 150 francs.

Swatch sales also slipped by nearly 15% last year, hit by sagging demand in China, which has also hurt luxury rivals like LVMH and Kering. Still, its Swiss peer and Cartier owner Richemont has retained its market appeal.

Richemont's watch sales ticked up slightly in 2024 and it has seen its shares rise almost a fifth so far this year. Swatch's stock is down by around 10% in 2025. Swatch is the most shorted stock on the Euro STOXX 600 index, according to LSEG data.

Bertschy at Vontobel said that although he did not expect major upheaval at the AGM, rising pressure could over the medium term open the door for changes at Swatch, which has a market capitalization of over $9 billion.

Even if shareholders ultimately gain some leverage, CEO Hayek has pushed back against market pressure and periodically said he could take the company private.

($1 = 0.8324 Swiss francs)