Tim Steiner, the co-founder and chief executive of Ocado, has stated he has no intention of acting as a 'puppet master' exerting control over staff amid an apparent boardroom dispute over succession at the grocery technology firm. Steiner, who plans to step down as CEO in 2028, suggested that any successor would be willing to collaborate with him.
Shares in the company plummeted nearly 15% to their lowest level in over a decade on Thursday after the group reported pre-tax profits of £17 million for the six months ending 31 May, a sharp decline from £607 million in the same period last year.
Boardroom tensions and succession plans
In a trading statement, the company attempted to downplay reported tensions regarding Steiner's position, with no comment from chair Adam Warby. Warby had reportedly initiated a search for a new chief executive without consulting Steiner. Last week, Ocado announced that Steiner would step down as CEO in two years but remain in a 'founder role' for an additional year, offering 'strategic guidance, deep market expertise and support' to the board until 2029.
Steiner said on Thursday that if those running the business wanted him to stay longer, he would. 'Anybody I have ever spoken to about the possibility of the role, externally or internally, is more than happy to keep some of my involvement in terms of relationships with clients with the perspective of having spent 26 and a half years of solving these challenges.' He added, 'I have no intention of being a puppet master and controlling everybody. I will be there to support them and give clients ongoing certainty of my involvement and how we can help them.'
Financial performance and future outlook
The succession plan was unveiled after weeks of speculation about Ocado's leadership following a slump in its stock market valuation over the past year. Steiner, who co-founded Ocado in 2000 with two other former Goldman Sachs bankers, stated he remained 'fully committed to leading Ocado through the next phase' and insisted the business was 'on a good path'. He declined to comment on the position of chair Adam Warby, who took the role in 2024, and whether they could continue working together. However, Steiner, who has received nearly £100 million in pay since Ocado's stock market listing in 2010, said he was 'not standing in the way' of hiring a new CEO.
'It's an exciting time,' he said, with the business still expecting to generate positive cashflow by year-end in November. Ocado anticipates signing new clients in the US within the next six to 12 months, and existing clients are experiencing strong growth. Steiner added that Ocado is poised to open robot-run distribution centres for clients in South Korea, Japan, and Phoenix, US, this year. He also noted that new facilities may be needed in the UK from 2028 as its retail joint venture with Marks & Spencer continues to expand rapidly, with sales up 15% to £1.76 billion in the half year.
Market reaction and analyst comments
Adam Vettese, a market analyst at trading platform eToro, commented: 'The group remains loss-making, with cash burn still evident, albeit improving, and international technology adoption has continued to lag following earlier partner setbacks. With the shares already down almost 30% year to date and trading near multi-year lows, the negative reaction underlines persistent doubts over execution and the timeline to cashflow positivity.'
