Ocado’s proposed new bonus scheme that would see chief executive Tim Steiner awarded up to £14.8m, has been opposed by almost a fifth of shareholders at the group’s annual general meeting.
The online grocery tech firm, which is the co-owner of online supermarket Ocado Retail, proposed the plan earlier this month, as its current scheme draws to a close this year.
Some 19.43% of votes cast at the annual general meeting today (29 April) opposed the policy and 19.38% opposed its 2024 performance share plan.
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Shareholder advisory group Glass Lewis had urged investors to vote against the retail tech firm’s “egregious remuneration practices”, having said “we remain concerned about the potential for excessive remuneration” and “question the need for this enhanced incentivisation tool”.
If Ocado’s share price hits £29.69 in three years’ time and it upgrades its cash flow, Steiner could be awarded a share of around £14.8m from 2027 – 1,800% of his £824,570 base salary.
Ocado chair of the remuneration committee Julie Southern said in the company’s recent annual report that the new scheme “offers substantial comparative reward for transformational performance while migrating to a structure that will be more motivating and retentive for executives”.
Last year, almost a third of votes cast at Ocado’s AGM went against its proposed bonus plan that would see Steiner take home £100m over the next five years if share price targets are met.
