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Ocado faces backlash over boss Tim Steiner’s £100m pay plan

Nearly 30% of Ocado investors voted against the award scheme when it was implemented in 2020.

Ocado faces a shareholder backlash over plans to reward boss Tim Steiner with up to £100m at a time when the country is facing a cost of living crisis.

According to the Daily Mail, he could receive the sum over five years if the share price triples under a “value creation scheme”, which has ignited criticism from shareholder Royal London as well as investor advisers Glass Lewis and Institutional Shareholder Services.

Legal and General Investment Management (LGIM) has also consistently voted against the scheme in the past.

Ocado said Steiner missed his share price target that would have triggered a £20m bonus in March. Now Ocado wants to extend the scheme until 2027.

Additionally, nearly 30% of Ocado investors voted against the award scheme when it was implemented in 2020 and around 13% voted against it last year.

Ocado’s share price climbed to more than £28 during the heights of the pandemic, however it has since dropped to £9.30 – “way below” target projections for future payouts.

Sophie Johnson, corporate governance manager at Royal London Asset Management, told the Daily Mail: “The company’s value creation plan has the potential to pay out up to £20million annually based on a single performance metric. This effectively eliminates the concept of pay-for-performance and ensures that pay will remain high.”

Luke Hildyard, director of the High Pay Centre, added: “It’s really quite surprising that companies continue to choose to hand out ever more lavish pay packages at a time when their own colleagues and customers are being hit hard by rising prices and stagnating pay.”

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