AskMen.com wanted me to come up with a list of "top 10 graduation watches." This wasn't easy, but I do know that a good graduation watches should be conservative, tasteful, perfect for the first job interview, and also be a sentimental item you can keep for a long time. So I can up with list of mid to entry level luxury watches for most budgets. Timeless watches that he will appreciate as a new grad and years down the road.
I wholeheartedly agree with the Victorinox as a graduation present. Perhaps the higher ends pieces if they achieved some sort of scholastic awards along the way as well. Definitely get the graduate an automatic or manual winder with some sapphire crystal.