Ocado CEO Tim Steiner has received £94m in remuneration since the company’s 2010 initial public offering, even as the online grocer’s share price has struggled to maintain its flotation value. According to analysis by the High Pay Centre, these payouts have drawn criticism from campaigners regarding corporate governance, while reports from Sky News suggest the company’s board has initiated discussions regarding potential leadership succession.
Why is Tim Steiner’s pay under scrutiny?
The High Pay Centre reports that Steiner’s total compensation since 2010 reached £94m. A significant portion of this total—nearly £59m—was awarded in 2019, a year marked by international expansion deals for the company’s proprietary grocery-picking technology. Paddy Goffey, head of research at the High Pay Centre, stated that these figures highlight a “broken executive pay framework” where compensation is driven by sporadic, outsized awards rather than consistent performance metrics.
Ocado’s share price recently dipped to 172p, falling below its 2010 flotation price of 180p, despite the company’s valuation growing from its value at launch to approximately £1.4bn today.
What is the status of Ocado’s leadership succession?
Ocado’s board has reportedly approached Niklas Heuveldop, the chief executive of Vonage, to discuss a potential leadership transition. While Ocado confirmed that “the chief executive and the board continually engage in long-term succession planning and regularly engage with potential candidates”, the company declined to comment on specific individuals. Sources cited by Sky News indicate that the search may have been initiated by Adam Warby, the company’s chair appointed in December 2024, amid mounting pressure from the persistent slump in the firm’s share price.
How do shareholders and analysts view the company’s performance?
Opinion remains divided among stakeholders. Clive Black, an analyst at Shore Capital, noted that while Steiner oversaw the growth of a FTSE 100 business, the company has “barely made a profit” throughout its existence. Conversely, Jörn Rausing, who controls a 10% stake and sits on the board, is thought to be supportive of Steiner, having increased his stake in March. Internal company sources suggest that many senior managers favor stability, fearing that a sudden exit could disrupt ongoing technological development.
Comparison: Performance vs. Compensation
| Metric | Status |
|---|---|
| Total Payouts to Steiner | £94m |
| Share Price vs 2010 Float | Lower (172p vs 180p) |
Frequently Asked Questions
- Has Tim Steiner resigned? No. As of the latest reports, he remains in his position, though the board is actively engaged in succession planning.
- Why are investors concerned about Ocado? Investors have expressed concern over the company’s low share price, the closure of automated warehouses by international partners, and the overall profitability of the business.
- Who initiated the search for a new CEO? Sources suggest the process is being led by chair Adam Warby, who joined the board in December 2024.
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