Novo Nordisk, the Danish pharmaceutical giant behind the blockbuster weight loss drugs Wegovy and Ozempic, is facing a major corporate upheaval with the resignation of Chairman Helge Lund and six independent board members.
The unexpected mass exit follows a deep strategic conflict with the controlling shareholder, the Novo Nordisk Foundation, over the company’s board composition and direction.
The wave of departures, scheduled to take effect after an extraordinary shareholder meeting on November 14, highlights a governance crisis in a company already reeling from falling share prices and competitive pressures in the obesity drug sector.
Lars Rebien Sørensen, former Novo CEO and current chair of the Foundation, is set to become interim chairman amid calls for a rapid board overhaul to steer the company through turbulent times.
Novo Nordisk’s strategic battle in the boardroom
Helge Lund and the other departing board members are leaving because they couldn’t see eye to eye with the Foundation on what the next version of the board should look like.
The outgoing board wanted a lighter refresh, basically bringing in a few new skill sets while keeping some continuity.
The Foundation, however, pushed for a far deeper overhaul. With neither side willing to bend, the seven directors decided to resign.
It’s worth remembering the Foundation isn’t just another stakeholder; it effectively controls the company, holding about 75% of the voting power through Novo Holdings.
And it’s been pushing for rapid change as the competition in obesity drugs heats up, especially with Eli Lilly gaining ground.
This isn’t happening in isolation either. There has been growing frustration around recent strategy and leadership decisions.
Back in May, the company ousted CEO Lars Fruergaard Jørgensen after concerns that Novo was losing its early lead in the obesity market and the stock was sliding.
His replacement then announced aggressive cost cuts, including roughly 9,000 job reductions.
So the Foundation’s demand for a major board reshuffle is clearly part of a broader push to reset the company, both operationally and at the governance level.
In the meantime, former long-time executive Lars Rebien Sørensen has stepped in as interim chair, bringing back a familiar hand as the company works through this period of upheaval.
Navigating governance and market storms
This wave of resignations really highlights how unusual and sometimes tricky Novo Nordisk’s governance setup can be.
The company is ultimately controlled by the Novo Nordisk Foundation, which holds the vast majority of the voting power. The idea is to protect the long-term strategy, but that structure can create friction when priorities diverge.
That tension seems to have boiled over as market pressure ramped up.
Even though the board shake-up only knocked the stock down about 1% on the day, the bigger picture is already grim: Novo’s share price is down more than 40% this year, wiping out a huge amount of value since its peak in 2024 when it briefly became Europe’s most valuable company.
For now, four employee-elected directors and one representative tied to major shareholders are staying on.
What happens next, especially at the upcoming extraordinary general meeting, will be critical.
That’s when a new board will be elected, likely bringing in people more closely aligned with the Foundation’s long-term vision.
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