Ocado Group has confirmed that it regularly engages with potential candidates for the role of chief executive officer, following reports that the company is preparing to appoint a successor to co-founder Tim Steiner as part of a wider restructuring effort.
The online grocery and technology group said its board continually participates in long-term succession planning. The statement came after Sky News reported that Niklas Heuveldop, chief executive of Vonage, a subsidiary of Swedish tech group Ericsson, is being considered as a potential new boss.
Succession Planning Confirmed
“Ocado confirms that the CEO and the board continually engage in long-term succession planning and regularly engage with potential candidates,” the company told investors on Monday. Tim Steiner, who spent eight years as a banker at Goldman Sachs before co-founding Ocado in 2000 with former colleagues, has led the company since its inception.
Ocado operates a grocery retail business as a joint venture with Marks & Spencer, as well as an arm that runs robotic warehouses and technology platforms for supermarkets worldwide. The company announced in February that it would cut approximately 5% of its global workforce, primarily at its headquarters in Hertfordshire, as part of restructuring efforts.
Share Price and Market Challenges
Ocado's share price has faced pressure following the closure of warehouses operated with grocery partners in the United States. Currently trading at around £1.80 per share on the London Stock Exchange, the stock has fallen significantly from its peak of approximately £29 per share in 2020. Despite these challenges, Ocado recently announced a new partnership with Asda to enhance the supermarket's online grocery service for customers.
The succession planning comes at a critical time for Ocado as it navigates a rapidly evolving grocery market and seeks to expand its technology platform globally.
