Several board members at Novo Nordisk are stepping down following disagreements with the controlling Novo Nordisk Foundation over the board’s composition. The Danish pharmaceutical firm, known for its diabetes and weight loss treatments, said talks had failed to reach agreement on the board’s future structure.
Helge Lund, board chair, said, “The Board proposed a renewal focusing on addition of select, new competencies while also maintaining continuity, whereas the Board of the Foundation wanted a more extensive reconfiguration.” The Foundation proposes its current chair, Lars Rebien Sørensen, a former CEO, to lead the board of directors.
Although there is no disagreement on company strategy, the Foundation criticised the board for slow decisions and a delayed response to market changes in the U.S. Sørensen noted differing views on appointing a new CEO, with the Foundation pushing for a swift choice and the board favouring a more thorough search.
Shares in Novo Nordisk fell 1.3% after the announcement. Lund, vice chair Henrik Poulsen, and several independent directors will not seek re-election at the Extraordinary General Meeting on November 14. Kasim Kutay and employee representatives will remain, while the Foundation proposes new appointments including Cees de Jong as vice chair.
This comes amid rising competition in obesity treatments. CEO Mike Doustdar, who replaced Lars Fruergaard Jørgensen in May, is leading a reset, including cutting about 11.5% of the workforce to focus on core diabetes and obesity businesses.