Ocado shareholders stage rebellion over chief executive’s £2m pay deal

OCADO shareholders have staged a rebellion against chief executive Tim Steiner’s near-£2m pay package as the online retailer faces mounting losses.

Mr Steiner received a £755,000 salary last year and an annual bonus of £1.19m, alongside other benefits.

Lucrative pay deals were also handed to other members of Ocado’s executive board. Chief financial officer Stephen Daintith received a £1.39m package last year, while five directors were paid almost £7m between them.

More than 30pc of shareholders voted against the remuneration package at Ocado’s annual general meeting yesterday, although the deal was passed after receiving the necessary majority of votes.

Ocado said the vote against its pay policy was related to its annual bonuses for the year and its separate value creation plan – a five-year incentive scheme that pays up to £100m in bonuses if share price targets are reached. Under the scheme, Mr Steiner could receive an additional £20m per year.

According to Ocado, none of its directors received a payout under the value creation plan for the year, although they backed its continuation despite shareholder opposition.

Ocado said: “The board continues to believe that the implementation of the current directors’ remuneration policy – which was approved at the 2022 annual general meeting – offers the best way to incentivise management and drive exceptional and sustainable longterm growth of the group while also rewarding short-term operational and strategic decisions.” The value creation plan was opposed by a third of shareholders when its extension was approved during last year’s annual general meeting.

Ocado previously faced backlash from investors after it handed Mr Steiner a £54m bonus for 2019.

The latest rebellion of shareholders comes after Ocado reported its first ever annual decline in grocery sales as rising living costs has forced shoppers to place fewer items in their baskets.

Ocado Retail, a joint venture between Ocado and Marks & Spencer, recorded a 3.8pc drop in revenue to £2.2bn in 2022.

Ocado also recorded pre-tax losses of £501m for 2022, as inflationary pressures weighed down on the company’s profitability. Its share price has fallen nearly 23pc this year.

Last week, Ocado announced plans to close its warehouse in Hatfield, Herts, later this year, putting up to 2,300 jobs at risk. Its orders will instead be fulfilled by automated warehouses which can pick 200 units per hour, compared to Hatfield at 150 units an hour.