Novo Nordisk (NYSE:NVO)said on Tuesday that its chairman, Helge Lund, and six other independent board members will resign following a dispute with the company’s largest shareholder, the Novo Nordisk Foundation.
The resignations, which include vice chair Henrik Poulsen, will take effect at an extraordinary shareholders meeting scheduled for November 14.
The company said the board members will not stand for re-election.
The dispute centered on differing views about the pace and scope of governance changes as Novo Nordisk seeks to maintain its position in the fast-growing obesity treatment market, where competition from US rival Eli Lilly and Co (NYSE:LLY) has intensified.
According to the company, the outgoing board had supported a gradual renewal by adding new expertise while preserving continuity, but the Novo Nordisk Foundation favored a broader overhaul of the board’s composition and structure.
The Foundation plans to nominate former Novo Nordisk chief executive Lars Rebien Sørensen as interim chairman for a two- to three-year period to help guide the company through its next phase under the recently appointed CEO.
The boardroom changes come amid a period of transition for the Danish pharmaceutical giant, known for its popular weight-loss drug Wegovy and diabetes treatment Ozempic.
The company appointed a new chief executive in August and announced in September that it would lay off 9,000 employees as part of a restructuring effort.