The dismissal of Novo Nordisk’s CEO, Lars Fruergaard Jørgensen, and the subsequent intervention of the Novo Nordisk Foundation have sparked debate among experts regarding corporate governance and the foundation’s role. According to Kurt Jacobsen, a business historian and author of a book on Novo Nordisk, the foundation’s direct involvement in the CEO’s firing is unprecedented and raises questions about the reasons behind the decision.

Jacobsen expressed surprise at the foundation’s direct order for Fruergaard’s departure. Historically, the foundation has maintained a relatively withdrawn role in the company’s affairs, making this intervention particularly noteworthy. He highlighted a previous instance in 2004 when the foundation blocked a merger, but emphasized that the current situation is far more intrusive in relation to Novo Nordisk’s management and board.

The official explanation for the CEO’s firing, citing recent market challenges and stock price declines, is viewed with skepticism. Jacobsen finds it difficult to believe that these factors alone would warrant such a drastic measure, especially considering Lars Rebien Sørensen’s track record of delivering stock surges.

Jacobsen acknowledges that the stock price has experienced a significant decline from a record high in June 2024 to a record low in April 2025. The confluence of factors, including developments in the US and issues with generic drugs, has undoubtedly impacted Novo Nordisk’s performance.

The foundation’s intervention may stem from concerns about the management of shareholders’ money, particularly given the foundation’s role as the majority shareholder. As such, the foundation may have felt compelled to act in response to the stock price decline and market challenges.

Despite these possible explanations, Jacobsen remains unconvinced that the full story has been revealed. He suggests that there are still a large number of unknowns surrounding Lars Fruergaard Jørgensen’s sudden departure. He concludes that the situation is completely unusual, and that the main reason for the CEO’s firing is yet to be fully understood.