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Ocado could reportedly face a shareholder revolt later this month over a new pay scheme that includes a bonus of up to £15m for its CEO, The Financial Times has reported.
According to the FT, it comes as the group is looking to change its pay plan as the previous scheme is set to end this year.
Its CEO and co-founder Tim Steiner is reportedly set to acquire a bonus worth around £14.8m from 2027 if Ocado’s share price reaches £29.69 in three years’ time, and if it improves its cash flow. Currently, Ocado shares trade at less than £4.
In light of this proposal, several advisory groups have urged shareholders to vote against the proposed remuneration programme and share awards.
The FT said these groups had raised concerns that the changes could lead to “excessive pay” and “[award] materially above market norms”. Glass Lewis reportedly called Stenier’s incentive scheme “an award level in excess of peers”, whilst Institutional Shareholder Services cited “material concerns” over the proposed scheme.
Last year almost a third of votes cast at Ocado’s AGM went against bumper bonuses and pay for the company’s heads.
Steiner, who was paid almost £2m last year, was paid £59m in 2019 despite Ocado suffering a £215m loss, in what was one of the largest annual payouts for a FTSE 100 CEO.
Ocado has been contacted for comment.
