Ocado CEO Tim Steiner’s nearly £100m in pay raises concerns, report says
13 reported3 unconfirmed
An analysis by the High Pay Centre shows Ocado CEO Tim Steiner has received approximately £94 million in payouts since the company's 2010 stock market flotation, despite its share price now trading below that level. The figure raises "serious concerns about proportionality, accountability and fairness" in the pay-setting process, according to campaigners. Steiner, a former Goldman Sachs trader who co-founded the online grocery technology company in 2000, is reportedly in discussions about his future after Ocado approached at least one potential replacement. Sky News reported that the board had contacted Niklas Heuveldop, CEO of Vonage, though it is unclear if he is a preferred candidate. Ocado stated that the board continually engages in long-term succession planning. The company's share price has fallen more than 90% in the past five years, and it is worth about £1.4 billion compared to £720 million at flotation.
What’s reported
Tim Steiner has received £94m in payouts since Ocado's 2010 flotation, according to High Pay Centre analysis.
The figure raises "serious concerns about proportionality, accountability and fairness," said Paddy Goffey of the High Pay Centre.
Steiner's payouts included nearly £59m for 2019, largely due to deals selling grocery-picking tech to foreign supermarkets.
Ocado's share price fell to as low as 172p this week, below the 2010 float price of 180p.
Shares have fallen more than 90% in the past five years, from nearly £28 during the Covid pandemic.
Ocado is worth about £1.4bn today, compared with £720m on flotation, but more shares in issue have diluted early stakes.
Sky News reported Ocado's board approached Niklas Heuveldop, CEO of Vonage, as a potential replacement.
Sources close to Ocado said the search was likely launched by chair Adam Warby, appointed in December 2024.
Steiner admitted: "The market for large automated distribution centres in the US is smaller than we thought it would be."
Kroger announced in November it was closing three US warehouses using Ocado equipment; Sobeys closed its Calgary facility in January.
Analyst Clive Black of Shore Capital said a plan to oust Steiner "wouldn't be wholly unfathomable given the [low] share price and how much he pays himself."
Some large shareholders, including Jörn Rausing (10% stake), are thought to be supportive; Rausing increased his stake with £5.4m in March.
One Ocado insider said Steiner's exit would not be welcomed by senior managers, who see the company "on the right track."
Open questions
Whether Niklas Heuveldop is a preferred candidate or how advanced succession planning is.
Whether major shareholders are divided over Steiner's potential exit.
Whether the board has consulted Steiner about the search for a replacement.
Key figures
Tim Steiner, CEO and co-founder of Ocado
Paddy Goffey, head of research at the High Pay Centre
Niklas Heuveldop, CEO of Vonage
Adam Warby, chair of Ocado (appointed December 2024)
Clive Black, analyst at Shore Capital
Jörn Rausing, shareholder with 10% stake and Ocado board member
Sources: The Guardian
