Norway's Oil Fund to Abstain From Voting for Re-Election of Novo Nordisk Chairman

By Dominic Chopping

Norway's $2 trillion sovereign-wealth fund won't support the re-election of Lars Rebien Sorensen as chairman of Novo Nordisk's board at the company's annual general meeting later this week.

Norges Bank Investment Management--the arm of Norway's central bank that manages the world's largest sovereign-wealth fund, commonly known as the oil fund--will abstain from the vote, citing "concern regarding effective boards or shareholder protection."

NBIM also abstained from the vote to appoint Sorensen to the position at an extraordinary general meeting in November.

The oil fund held a 1.6% stake in the Danish drugmaker at the end of last year, according to the most recent figures available.

NBIM votes according to a set of guidelines that it says seek to further the long-term economic performance of its investments and reduce financial risks associated with the governance of companies and their environmental and social practices.

The guidelines include stipulations for board independence to avoid conflicts of interest, a balance of competences and backgrounds, and accountability, among others.

Sorensen was appointed chairman late last year as part of sweeping board changes that were pushed by the company's controlling shareholder to revive the company's success in the weight-loss market.

The Novo Nordisk Foundation--the nonprofit organization that owns voting control of the drugmaker--wanted extensive leadership change as the drugmaker lost its lead in the obesity market, causing steep stock-price declines.

Under those changes, Sorensen, the chairman of the Novo Nordisk Foundation, was appointed to also serve as the Novo Nordisk chairman under a plan that will see him serve in the role for two to three years to support management during the company's restructuring and in regaining growth momentum.

"We appreciate the role that all shareholders and other stakeholders play in the company's governance, and we look forward to engaging with them at the Annual General Meeting this week," a spokesperson for Novo Nordisk said Monday.

Norges Bank Investment Management declined to comment.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

March 23, 2026 07:55 ET (11:55 GMT)

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