Posted by Kathryn DeHart

Novo Nordisk, the Danish company behind the breakthrough GLP-1 treatment 'Ozempic,' operates under a 'foundation ownership model'—meaning that the majority of the company's voting power is held by a foundation, while the majority of the equity is owned by public investors.

Findings

Additional insights we found via Yahoo Finance

  1. The foundation ownership model is similar to a dual-class stock structure that separates equity and voting power in publicly traded companies to give certain individuals more control over the company.

  2. The Novo Nordisk Foundation retains roughly 77% of the voting power, but only about 28% equity. These numbers are almost exactly reversed for traditional investors.

  3. Advocates of this model say it insulates companies from hostile takeovers by keeping most of the voting power with a select, trusted few.

  4. Critics of this model say it harms a company by limiting outside perspectives and potentially shielding it from criticism that might drive innovation.

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