Key facts
- Ocado CEO Tim Steiner has received nearly £100 million in payouts since the company's 2010 IPO.
- The company's share price is currently below its flotation level.
- A significant portion of Steiner's compensation, nearly £59 million, was awarded in 2019.
- Ocado's board is reportedly exploring succession plans and has approached potential CEO replacements.
- Shareholder and board sentiment regarding Steiner's future appears divided.
Ocado CEO Tim Steiner has amassed nearly £100 million in payouts since the online grocery technology company's 2010 stock market debut, a figure that has drawn significant criticism given the company's current share price languishes below its flotation level. Analysis by the High Pay Centre revealed Steiner has received £94 million in total, including share awards, with a substantial £59 million awarded in 2019 largely due to international deals selling Ocado's grocery-picking technology.
Campaigners have voiced "serious concerns about proportionality, accountability and fairness" regarding the executive pay structure, with Paddy Goffey of the High Pay Centre highlighting how compensation can be shaped by sporadic, outsized awards rather than consistent performance. This comes as Sky News reported that Ocado's board has begun exploring succession plans, approaching at least one potential replacement for Steiner, identified as Niklas Heuveldop, CEO of Vonage. Sources suggest this search was initiated by the relatively new chair, Adam Warby, amid pressure from the slump in Ocado's share price.
Ocado's share price dipped this week following reports of Steiner's potential departure, falling to 172p, below the 2010 float price of 180p. While the company's overall market valuation has increased since its IPO, new share issuances have diluted early shareholders' stakes. The company has faced setbacks, including major partners like Kroger and Sobeys closing facilities that utilized Ocado's technology, leading Steiner to admit the US market for automated distribution centers is smaller than anticipated. Analyst Clive Black noted that a plan to remove Steiner would not be surprising given the low share price and his compensation, though he also acknowledged Steiner's role in building Ocado into a FTSE 100 business. Some significant shareholders, such as Jörn Rausing, are reportedly supportive of Steiner, while internal sources suggest his exit could create further internal challenges.