Novo Chair Faces Investor Pushback Over Dual Leadership Role (1)

Novo Nordisk A/S Chairman Lars Rebien Sorensen is facing opposition over his dual role leading the Danish drugmaker and its biggest investor, after a key proxy adviser recommended shareholders abstain from backing his re-election.

Institutional Shareholder Services Inc. raised concerns over Sorensen heading both the Novo Nordisk board and the Novo Nordisk Foundation, the controlling shareholder with 77% of the company’s voting rights. The dual chair role raises concern about Sorensen’s ability to “effectively oversee management and serve the best interests of shareholders,” ISS said.

The concentration of power “has the potential of compromising the board’s independence and its ability ...