Ocado Boss Tim Steiner Faces Shareholder Rebellion Over Pay Scheme
Quote from VATcal on 29/04/2024, 21:02Ocado's chief executive, Tim Steiner, is facing a significant backlash from shareholders over a proposed bonus scheme that could see him awarded a payout of up to £14.8 million. The controversy comes to a head today at the company's annual general meeting, where investors are being urged to reject the pay plan.
Shareholder advisory groups Glass Lewis and Institutional Shareholder Services (ISS) have both recommended voting against the scheme, citing concerns about excessive remuneration. The ISS highlighted the potential for a large payout despite "no dividend and a general decline in the company's share price over the past few years."
The proposed scheme hinges on Ocado's share price reaching £29.69 within three years, a monumental increase considering the current price sits at around £3.60. If this target is met, alongside other performance metrics, Steiner would be eligible for a bonus worth a staggering 1,800% of his base salary.
Adding fuel to the fire, critics point out that Ocado has yet to deliver on a five-year-old promise to address low wages for its staff. The GMB union, representing many Ocado workers, is calling on the company to prioritise fair pay for its employees rather than executive bonuses.
This shareholder revolt exposes a widening gap between executive pay and wider corporate performance. With Ocado's share price having plummeted since its 2020 peak, many investors question the justification for such a hefty bonus. The outcome of today's vote will be closely watched, with potential ramifications for executive pay structures across the retail sector.
Ocado's chief executive, Tim Steiner, is facing a significant backlash from shareholders over a proposed bonus scheme that could see him awarded a payout of up to £14.8 million. The controversy comes to a head today at the company's annual general meeting, where investors are being urged to reject the pay plan.
Shareholder advisory groups Glass Lewis and Institutional Shareholder Services (ISS) have both recommended voting against the scheme, citing concerns about excessive remuneration. The ISS highlighted the potential for a large payout despite "no dividend and a general decline in the company's share price over the past few years."
The proposed scheme hinges on Ocado's share price reaching £29.69 within three years, a monumental increase considering the current price sits at around £3.60. If this target is met, alongside other performance metrics, Steiner would be eligible for a bonus worth a staggering 1,800% of his base salary.
Adding fuel to the fire, critics point out that Ocado has yet to deliver on a five-year-old promise to address low wages for its staff. The GMB union, representing many Ocado workers, is calling on the company to prioritise fair pay for its employees rather than executive bonuses.
This shareholder revolt exposes a widening gap between executive pay and wider corporate performance. With Ocado's share price having plummeted since its 2020 peak, many investors question the justification for such a hefty bonus. The outcome of today's vote will be closely watched, with potential ramifications for executive pay structures across the retail sector.
