Power Shuffle at Novo Nordisk Sparks Governance Debate

A major boardroom shake-up at Novo Nordisk has handed unprecedented control to its top shareholder, the Novo Nordisk Foundation, unsettling investors. The recent changes raised concerns about governance as foundation chair Lars Rebien Sorensen was also named board chairman, an unprecedented dual role.

Despite Novo Nordisk's past success as Europe's most valuable company, slowing sales and rising competition from U.S. rival Eli Lilly have led to a significant decline in its market share. The foundation, with a 77% voting share, ousted board members for failing to address the company’s dwindling fortunes swiftly.

While some investors have welcomed tighter management control, others demand a clearer separation between the foundation and the drugmaker's operations. Novo aims to tackle these challenges with a newly appointed CEO, Mike Doustdar, who is steering a comprehensive restructuring plan.