Key facts
- Ocado confirmed that CEO Tim Steiner is involved in succession planning.
- Niklas Heuveldop, chief executive of Ericsson subsidiary Vonage, was approached about taking over from Steiner.
- Ocado's share price has fallen dramatically since its peak in September 2020.
- The company has recently partnered with Asda in the UK.
- Shareholders have expressed concerns about Ocado's path to sustainable profitability.
Ocado's co-founder and veteran CEO Tim Steiner is reportedly engaged in succession planning, a process that typically involves the chairman and non-executives. However, Steiner's personal involvement suggests an unusual situation at the retail technology provider. Sky News reported that Niklas Heuveldop, chief executive of Ericsson subsidiary Vonage, was approached by headhunters weeks ago regarding the role, though the imminence or certainty of his appointment remains unclear.
Shareholders have experienced a significant decline in Ocado's stock value, which peaked at over £29 in September 2020 and closed at 178.1p recently. This slump has led to questions about whether a new leader is needed to bring fresh perspectives to the company's technology and partnerships pipeline, and to resolve its long-standing dispute with Marks & Spencer. Despite recent partnership deals, such as with Asda in the UK, and potential international agreements, investor confidence in sustainable profitability has waned, particularly after disappointing news from its North American operations over the past year.
Separately, the article touches on the ongoing confusion surrounding Thames Water's future following Environment Secretary Emma Reynolds' intervention. Her concerns about consumers bearing undue costs and reduced performance standards have deepened uncertainty, especially as the company faces financial pressures and a potential change in government favouring utility nationalisation.
Additionally, Lord Harrington of Watford, who previously authored a review on foreign direct investment in Britain, is reportedly investing in the sector. GeoPura, a UK-based hydrogen energy producer, was acquired by Nasdaq- and Toronto-listed Ballard Power Systems for £275m. Lord Harrington and GeoPura's founder and CEO, Andrew Cunningham, are set to join the Ballard board. This investment is seen as transformative, supporting UK expertise and exports in the hydrogen sector.