Newly installed Chairperson Lars Rebien Sorensen signaled a rapid shift in governance and strategic direction at Novo Nordisk A/S (NYSE:NVO), saying he intends to strengthen the board's pharmaceutical and over-the-counter expertise while easing concerns about the sweeping power now held by the Novo Nordisk Foundation.
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On Friday, Novo Nordisk held its Extraordinary General Meeting, which was convened to elect new members of the Board of Directors.
At the Extraordinary General Meeting, Helge Lund (chair), Henrik Poulsen (vice chair), and the Board members Laurence Debroux, Andreas Fibig, Sylvie Grégoire, Christina Law, and Martin Mackay stepped down from the Board of Directors.
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Governance Overhaul Sparks Controversy Among Shareholders
Lars Rebien Sørensen was elected as the chair, and Cees de Jong as vice chair of the Board of Directors.
Britt Meelby Jensen and Stephan Engels were elected as board members.
His remarks came after a rare board overhaul that consolidated unprecedented decision-making authority under the foundation and drew protests from minority shareholders.
The extraordinary shareholder meeting finalized a restructuring that hands the foundation 77% of the company's voting rights, despite holding only about 28% of its share capital.
The disproportionate influence, critics argue, raises questions about governance stability and accountability, Reuters noted.
Sorensen, who also chairs the Novo Nordisk Foundation, now occupies a dual post never before seen at the company.
Novo Nordisk's Future With New Leadership?
Reuters noted that the arrangement prompted fears that too much authority had been concentrated in one individual. Sorensen countered those concerns by stressing that his time in the role will be short and transitional.
The overhaul followed last month's sudden exit of former chairman Helge Lund and several independent directors who objected to the foundation's governance approach. According to Sorensen, the foundation pushed for deeper changes to stabilize the company and support long-term expansion amid rapid shifts in strategy and leadership.
Over 90% of shareholders supported the revised board, but some minority investors abstained or raised concerns that the concentration of voting rights and Sorensen's dual role could hinder independent oversight.
Looking ahead, Sorensen said his priority is adding directors with recent pharmaceutical or OTC experience as Novo Nordisk accelerates its shift toward a direct-to-consumer, cash-pay model.
He also criticized the former board for moving too slowly to address weakening performance in the U.S. market. Over the summer, he pushed to fast-track the appointment of new CEO Mike Doustdar, who is now executing a major round of global layoffs. The company also pursued an aggressive bid for Metsera but ultimately lost the contest to Pfizer (NYSE:PFE).
NVO Price Action: Novo Nordisk shares were down 0.12% at $48.20 at the time of publication on Monday. The stock is near its 52-week low of $45.05, according to Benzinga Pro data.
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