Novo Nordisk's leadership strategy tested as shareholders signal frustration ahead of vote on board revamp

Core Insights - Novo Nordisk is undergoing a leadership shakeup as its controlling shareholder tightens its grip on the company, leading to discontent among minority shareholders [1][3] - The company's shares have recently plunged, raising concerns about its leading position in the lucrative weight-loss market [2] - An Extraordinary General Meeting is scheduled for November 14 to replace independent board members, including the current Chair Helge Lund, due to disagreements between the board and the Novo Nordisk foundation board [3] Shareholder Reactions - Norges Bank Investment Management (NBIM), a significant minority shareholder, announced it would abstain from voting at the upcoming EGM, reflecting dissatisfaction with the current situation [4] - Other shareholders, such as the California State Teachers' Retirement System, have indicated they will vote against the proposed changes [4] Leadership Changes - Helge Lund will be replaced by Lars Rebien Sørensen, a veteran of the company and former CEO, who is also the chair of the Foundation board [5] - The foundation has proposed new board members, including Cees de Jong as vice chair and others such as Mikael Dolsten, Britt Meelby Jensen, and Stephan Engels [5] Market Performance - Following the announcement of leadership changes, Novo shares fell by 1.8% to $312.90 in morning trading [6] - The rapid changes in leadership at such a large company are considered unusual, according to experts [6]