Novo Nordisk chairman, board members to exit after clash with top shareholder
Novo Nordisk Chairman Helge Lund and most of the company's independent directors will step down following a dispute with its controlling shareholder, the Novo Nordisk Foundation, over the board's future makeup.
The Danish drugmaker said Tuesday it will hold an extraordinary general meeting on Nov. 14 to elect new board members after failing to reach an agreement with the foundation.
According to the company, the foundation, which holds a majority of the votes, wanted an "extensive reconfiguration," while the board proposed a more limited renewal.
"After thorough deliberation and considering the Foundation’s position and control of the majority of votes in Novo Nordisk, the Board concluded that it is in the best interest of the company and its shareholders to convene an Extraordinary General Meeting," Chairman Helge Lund said in a statement.
The move marks an assertion of control by the foundation, which in May cited market challenges and a share price decline when it pushed for an accelerated succession plan for the company's chief executive.
Along with Lund, Vice Chair Henrik Poulsen and five other independent board members will not stand for election.
The leadership shake-up comes as Novo Nordisk navigates slowing growth, which prompted a major restructuring and 9,000 job cuts announced in September.
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