At 280 feet long, 55 feet wide and 26 feet high, the Hans Wilsdorf Bridge, which has won several architectural awards, is the most obvious symbol of a power that is so far-reaching people in Geneva speak of a “state within a state.” But it’s also so mysterious that some people are reluctant to mention its name.
The foundation that designed, planned and financed the bridge is one of the most influential foundations in Switzerland.
The Hans Wilsdorf Foundation — also just called “Wilsdorf” by Genevans — is the sole owner of one of the most successful and secretive companies in the world: Rolex. No one knows Rolex’s yearly revenue, profit or production numbers; none of this is made public.
Unlike many other luxury goods manufacturers, like Omega, Cartier or Louis Vuitton, Rolex is not part of a larger publicly traded company; it is only accountable to the Hans Wilsdorf Foundation, which holds 100 percent of the shares.
Hans Wilsdorf (Photo credit: Rolex)
Rolex's discretion is legendary and has hardly changed over the years. Of Hans Wilsdorf there is only one known interview, uncovered by Jake Ehrlich. In the video recording from 1959 the Bavarian-born Rolex founder doesn’t give up any business insights.
Still, some rough estimates peg Rolex production numbers today at more than a million watches per year while sales are estimated at around 10 billion francs annually. Profits are a total mystery. An important share of the foundation’s revenue also comes from a diversified real estate portfolio, as reported by Coronet.
Rolex founder Hans Wilsdorf had no direct descendants. In 1945, he set up a foundation and transferred all of his shares to that foundation upon his death, in 1960. Its main purpose is the continued existence of Rolex. The “properties of the foundation” are to allocate all resources that contribute to Rolex’s “preservation and normal development,” the document states in the introduction.
The amount of money used to secure Rolex's prosperity is not communicated anywhere. But Rolex's recent purchase of the largest watch and jewelry retailer in the world, Bucherer, is an indication of Wilsdorf's financial wherewithal. Bucherer revenues being at about CHF2 billion a year, its pricetag is likely to be several billions. Meanwhile, Rolex is planning a new production facility in Bulle, which will cost over 1 billion.
And yet, at the end of the day, there’s still money left over. This must go to “charitable organizations and patronages,” said Hans Wilsdorf. According to the foundation's original purpose, distant family members had to be taken into account. But after revising the foundation bylaws in 2006, the beneficiaries were paid out by mutual agreement.
Until now, the Hans Wilsdorf Foundation had never communicated how much money is used for philanthropy, and its representatives rarely agreed for an interview.
The foundation’s General Secretary Marc Maugué said it has around “300 million francs available for charitable purposes every year. When major projects are pending, it can be significantly more.” As the sole owner of Rolex, the foundation can ultimately decide how much it wants to pay out.
Giving away 300 million francs annually makes the Hans Wilsdorf Foundation one of the most powerful non-profits in Switzerland. Why don't people know more about the charity done indirectly through Rolex, one of the most famous brands in the world?
Hans Wilsdorf Foundation’s General Secretary Marc Maugué. (Photo Credit: Raphaelle Mueller)
Likely because of location: according to the foundation's purpose, the money can almost only be used in the canton of Geneva. When Hans Wilsdorf drew up the statutes in 1945, he listed countless recipients who should benefit from the charity. Hans Wilsdorf wrote “à Genève” or “genevois” after practically every point even though he was not originally from Geneva.
Thanks to a long list drafted by Wilsdorf, the eight-member board of trustees can consider almost every conceivable recipient in Geneva. Some of the major projects the foundation has supported in recent years have already been reported on Coronet:
In 2015, Wilsdorf saved the football club Servette FC from ruin with a double-digit million amount.
In 2017, the foundation bought several buildings for 100 million francs so that the University of Art and Design could build its new campus.
Who said Rolex didn’t support football?
In 2018, it would have contributed 200 million francs to a music temple that ultimately narrowly failed in a referendum.
In 2019, Wilsdorf took over the Plaza cinema, which was actually doomed, for a high double-digit million sum, where cultural life is now being revived, and financed half of the Geneva State Archives at a price tag of 50 million francs.
In 2020, the foundation helped found the Aventinus Foundation, which in turn owns the majority of shares in the newspaper “Le Temps” and the website Heidi.news.
Between 2017 and 2021, Wilsdorf bought several buildings in Plan-les-Ouates for hundreds of millions of francs each and is now moving social institutions and a watchmaking school into them.
Since spring 2022, a large building in the Plainpalais district has been converted into a women's shelter.
That same year, Wilsdorf gave the International Committee of the Red Cross the same amount the federal government is contributing: 100 million francs.
Last year, Wilsdorf took over an empty hotel, La Cour des Augustins, pictured below, for 32 million francs, so that charitable organizations help the unhoused.
Hotel La Cour des Augustins
While these kinds of large-scale projects are fairly easy to find, the smaller ones are near-impossible — like the donation to a family that can’t pay the rent deposit, or to the student whose parents are falling short.
The Hans Wilsdorf Foundation supports thousands of such individual projects every year in the areas of social, education and culture. But there is one area in which Hans Wilsdorf explicitly did not provide any geographical restriction before his death: animal protection.
According to Maugué, the 300 million francs given annually are divided roughly as follows: one third for humanitarian aid, one third for animals and the ecosystem, one third for local projects in Geneva.
In Geneva, people speak of a “state within a state.” And if you just say, “the foundation,” or the letter “W,” they will likely know what you're referring to.
One observer said officials in Geneva will never publicly criticize Wilsdorf. Almost all of them are dependent on the foundation in one way or another as projects throughout the canton often intertwine. The fact that several high-ranking employees of the foundation previously worked in the Geneva administration is no coincidence. Maugué himself was previously General Secretary of the cantonal social services authority.
A call to the Wilsdorf Foundation is like an “ace,” a local politician said. You keep it in your back pocket and use it only if you can't find any other source of funding. But it's always about projects that are “nice to have.” If a core government task is at stake, then Wilsdorf is deliberately kept out.
Another Geneva official said that thanks to the support of the foundation, pilot projects were made possible for which there was hardly any money left in the budget. He said the donation made it possible to implement projects fast and without taxpayers' money, projects that would otherwise have taken years or even decades. In fact, the funding tends to move quickly once approved because of Wilsdorf Foundation Board's lean structure.
From hanswilsdorf.ch
For many years, Tal Schibler was chairman of the board of trustees of Foyer-Handicap, a private foundation to which the canton is the most important donor.
Schibler says Foyer-Handicap is very careful not to ask Wilsdorf for amounts that is the canton's responsibility, like wages. But when Foyer-Handicap wanted to build a new residence in Geneva a few years ago, La fondation Hans Wilsdorf stepped in and provided a “significant portion” of the cost.
But Schibler said small contributions by the foundation are meaningful, too, like the purchase of a new vehicle. “The support from Wilsdorf makes it possible to buy better quality,” he said.
Maugué said the foundation is aware of the role of local politics in the decision making. The very first question the board ask themselves is whether the canton helps pay for the operation. If it does, then they will likely release the funds.
The historic Plaza cinema was supposed to be destroyed — until the Wilsdorf Foundation came along and brought new life.
When it comes to the Hans Wilsdorf Bridge, the foundation ended up taking the reins of the project because the city and canton could not reach an agreement. In some way, the foundation acted as legislator, something Maugué said they wouldn't do again. “We have learned from it and would not do the same today,” he said.
Today, Maugué said the foundation is willing to help if the project is “politically legitimate.” For example, Wilsdorf could help with a new infrastructure the city or canton wanted but didn’t have enough funds for. The foundation would secure the funds but let the city or canton officials manage the project.
The foundation receives almost 10,000 applications per year, and the majority of them are approved, Maugué said. “We examine each application individually, but in doubt we are more likely to say yes than no. Our motto is ‘be vigilant but benevolent.’”
Some of the grants awarded are subsequently audited using a random generator, he said. Fraud is practically nonexistent.
One of the reasons a high portion of applications are accepted is because they are prepared by social institutions and submitted on behalf of the person in need.
If a charity has just learned of a family in need and can't provide enough funds to help, it reaches out to Wilsdorf directly. Maugué says this process makes it easier for the foundation. The charity will be selective when it comes to requesting help from Wilsdorf, as it doesn't want to unnecessarily use its name and reputation with requests that won’t be approved.
When Wilsdorf releases the funds, and the money is transferred to the non-profit, the discretion is maintained. In the NGO's annual reports, the item would simply be listed under “donations.”
The Hans Wilsdorf Bridge
While the foundation does appear in larger projects, the projects never carry the name of the Rolex founder, except for the bridge over the Arve river, the Hans Wilsdorf Bridge. Still, when it comes to smaller donations, the foundation remains completely and deliberately in the background.
Does the Wilsdorf Foundation or Rolex have an ulterior motive for being so generous? “None!” said Maugué. “We act solely as the founding father wished.”
Geneva is sometimes called "The City of Calvin," as it is the city the Protestant leader sought exile from 1536 to his death, in 1564. While the work of the Wilsdorf Foundation could stem from a Protestant-inspired philanthropy, the fact Rolex makes its money from luxury watches makes it all the more quirky and interesting.
A real estate agent in China who tries to impress a client by wearing a new watch would hardly suspect he may be helping a single mom in Geneva escape the downward spiral of debt. That, too, is part of the powerful and mysterious effect of the brand. Hans Wilsdorf, the orphan and watch pioneer from Bavaria, would certainly smile about that.
Read also Where Does Your Rolex Money Go?