Oslo: Norway’s trillion-dollar sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), has announced it will abstain from voting on Novo Nordisk’s upcoming board appointments, signaling unease over corporate governance changes at one of Europe’s most valuable pharmaceutical companies. The decision comes ahead of Novo Nordisk’s extraordinary shareholders’ meeting scheduled for November 14, where the company’s controlling foundation plans to install former CEO Lars Rebien Sørensen as chairman of the board.
NBIM’s abstention, though subtle, sends a powerful message in corporate governance circles. The Norwegian fund, which owns about 1.79% of Novo Nordisk’s shares valued at approximately $5.5 billion as of June 2025 chose to remain neutral rather than endorse or oppose the board changes. Its reasoning lies in the proposed consolidation of leadership roles that could, in its view, blur the lines between ownership and oversight.
The Novo Nordisk Foundation, which controls about 77% of the voting rights through Novo Holdings A/S, is seeking to appoint Lars Rebien Sørensen as chairman of both the company and the foundation. This dual role, governance experts warn, could reduce the independence of Novo Nordisk’s board and tighten the foundation’s grip over company decisions.
NBIM’s decision to abstain reflects growing discomfort among global investors about concentrated corporate control structures, especially in companies where foundations or families dominate. By withholding its vote, the world’s largest sovereign wealth fund is sending a clear warning about maintaining transparency, accountability, and balance in corporate governance.
For Novo Nordisk, a global pharmaceutical powerhouse best known for its diabetes and obesity drugs, this development comes at a critical juncture. After years of dominance in the diabetes market, the company’s fortunes have been shaken by intensifying competition in the weight-loss sector, particularly from U.S.-based rival Eli Lilly.
Novo Nordisk’s shares have dropped over 50% this year, reflecting investor anxiety over shrinking profit margins and mounting strategic pressure. The foundation’s move to reinstall Sørensen who led Novo Nordisk between 2000 and 2016 is seen as an effort to restore confidence and accelerate the company’s long-term strategy. Yet, for many investors, this re-centralization of power raises as many questions as it answers.
Analysts suggest that while Sørensen’s return might inject experience and stability, it also risks creating conflicts of interest between the foundation’s priorities and the board’s duty to independent shareholders. As one observer noted, “When the same person chairs both the owner and the company, the system loses its checks and balances.”
NBIM’s abstention is not an isolated case it fits into a broader pattern of the fund’s increasing activism on governance issues. The fund, which invests Norway’s oil wealth globally, has consistently advocated for board independence, gender diversity, and responsible executive remuneration. Its decisions often influence other institutional investors, particularly in Europe, to take a closer look at corporate control mechanisms.
By stepping back rather than supporting the new appointments, NBIM is likely aiming to pressure Novo Nordisk and its foundation to reinforce governance safeguards and clarify the separation between ownership and oversight. The move is also symbolic of the growing influence of ethical investment principles in large-scale capital management.
The abstention could have ripple effects across the pharmaceutical and investment sectors. For Novo Nordisk, it highlights the delicate balance between innovation, leadership continuity, and corporate integrity. For investors, it raises the question of whether the company’s governance model remains fit for purpose as it navigates global expansion, competitive headwinds, and evolving market expectations.
The decision may also embolden other shareholders to scrutinize the upcoming vote more closely. Should other institutional investors follow NBIM’s lead, Novo Nordisk’s boardroom changes may face increased public and shareholder scrutiny, even if the foundation’s voting power ensures formal approval.
The November 14 meeting will be a decisive moment for Novo Nordisk’s leadership and governance future. All eyes will be on whether Sørensen officially assumes the dual chairmanship and how the company responds to shareholder concerns. Investors will also watch for signals from the Novo Nordisk Foundation about how it intends to balance its controlling influence with a commitment to transparent governance.
For NBIM, the abstention underscores its reputation as a global watchdog for responsible investing. For Novo Nordisk, it’s a wake-up call: rebuilding investor trust requires more than strategic turnaround it demands unwavering adherence to the principles of corporate accountability.