Extensive Board Overhaul Initiated
Novo Nordisk, the Danish pharmaceutical company renowned for its anti-obesity and diabetes treatments, has announced a comprehensive restructuring of its board of directors. The company revealed on Tuesday, October 21, 2025, that seven of its 12 board members, including the current chair, will step down. This significant shake-up is a direct result of an unresolved disagreement between the existing board and the Novo Nordisk Foundation, the company's majority shareholder, regarding the future composition and strategic direction of the board.
The Novo Nordisk Foundation, which holds approximately a quarter of the company's shares but controls three-quarters of the voting rights, advocated for a more extensive reconfiguration of the board than initially proposed by the incumbent members.
Reasons Behind the Restructuring
The decision to overhaul the board stems from concerns raised by the Novo Nordisk Foundation regarding the previous board's responsiveness to rapid shifts in the burgeoning obesity treatment market. Lars Rebien Sørensen, chair of the Novo Nordisk Foundation, stated that the current board was 'too slow in recognizing' changes in the market, which contributed to lagging growth for products like Wegovy. This period has also seen Novo Nordisk face slowing sales growth, cut its profit growth forecast for the third time this year, and announce 9,000 layoffs in September as part of a cost-cutting drive.
Furthermore, the company experienced a change in executive leadership in August 2025, with Maziar Mike Doustdar taking over as CEO from Lars Fruergaard Jørgensen. The foundation supports the new CEO and his transformation plan, but believes a renewed board with deeper industry-specific knowledge is crucial to navigate the increasingly competitive landscape, particularly from rivals like Eli Lilly and compounding pharmacies in the United States.
Key Personnel Changes
The outgoing board members include current chair Helge Lund and vice-chair Henrik Poulsen. Five independent directors—Laurence Debroux, Andreas Fibig, Sylvie Gregoire, Christina Law, and Martin Mackay—will also not stand for re-election.
The Novo Nordisk Foundation has put forward a new slate of candidates to be elected at an Extraordinary General Meeting (EGM) scheduled for November 14, 2025. The proposed new chair is Lars Rebien Sørensen, who previously served as Novo Nordisk's CEO from 2000 to 2016 and currently chairs the Novo Nordisk Foundation. Cees de Jong is nominated as the new vice-chair. Additionally, Britt Meelby Jensen, Mikael Dolsten, and Stephan Engels have been proposed as new board members. Kasim Kutay, CEO of Novo Holdings, and the four employee-elected board members—Elisabeth Dahl Christensen, Liselotte Hyveled, Mette Bøjer Jensen, and Thomas Rantzau—will retain their positions.
Looking Ahead
This comprehensive governance overhaul signals a period of significant transition for Novo Nordisk. The aim is to bring in new competencies and perspectives to support the leadership team in executing the company's strategy and to strengthen its position in the dynamic and competitive anti-obesity drug market. The newly elected board's immediate priority will be to implement the transformation agenda and work towards regaining the company's growth momentum.
5 Comments
Noir Black
More corporate instability. This rarely ends well for employees.
Loubianka
The company clearly needs to regain its growth momentum and adapt faster to market shifts. However, frequent high-level changes can disrupt long-term strategic planning and employee morale.
Noir Black
Foundation stepping in is smart. New blood for a competitive market.
Leonardo
Bringing in former CEO Lars Rebien Sørensen offers valuable historical insight and experience. Yet, relying on past leadership might limit the truly fresh and innovative thinking the company claims to seek.
Raphael
Finally, some real accountability! This shake-up was long overdue.