The head of Novozymes admitted his executives held few shares in the company on Friday, after the Danish biotech firm lowered its full-year sales and earnings outlook, citing challenging currency moves.
Novozymes, which produces industrial enzymes, microorganisms, and biopharmaceutical ingredients, reported third quarter earnings before interest and tax (EBIT) of 755 million Danish crowns ($140 million), beating consensus estimates of 746 million Danish crowns.
However, it lowered its organic sales growth target for 2013 to 5-7 percent, due to "unfavorable development in exchange rates since previous guidance". The company also fell short of achieving its targeted sales growth last year.
In an interview with CNBC, the firm's recently appointed chief executive acknowledged its advisory board held few shares in Novozymes — a sign of lack of confidence in the eyes of some investors.
"The board itself doesn't hold a lot of shares," said CEO Peder Holk Nielsen, who took the helm in April.
"Actually the chairman makes a principle out of not holding shares in the companies where he is a chairman. That is something that varies from company to company. I think in our case, the chairman wants to make sure he stays absolutely objective on any decision that is made by the board and I think the executive team is well aligned with the interest of other shareholders," he added.
Novo AS, the holding company for Novozymes' parent-company, Novo Group, owns 25.5 percent of the total outstanding common stock in Novozymes.