Ocado's co-founder and chief executive, Tim Steiner, will step down in 2028 after weeks of speculation over the online grocer's leadership. Steiner, who co-founded Ocado in 2000 with two other former Goldman Sachs bankers, will continue to serve as chief executive until the start of the 2028 financial year, which begins in December 2027, by which point the company hopes to have a successor in place.
Transition to Founder Role
Steiner, 56, will then stay on for another year in a 'founder role' providing 'strategic guidance, deep market expertise and support' to the board through to 2029, the company said. Ocado stated: 'The board is grateful for Tim's continued leadership and looks forward to working alongside him throughout this next chapter of Ocado's development.'
Business Operations
Ocado supplies automated technology for retailers' warehouses around the world – robots zipping around to pack groceries – and runs a UK online grocery venture with Marks & Spencer, which sells its products via the site. The news comes after reports that the Ocado chair, Adam Warby, and the Tetra Pak billionaire Jörn Rausing, a shareholder and board member, tried to oust Steiner after a slump in the company's share price. This prompted a backlash from long-term investors.
Board Dynamics
Warby was appointed in December 2024 and had previously chaired the headhunter Heidrick & Struggles for five years. The company said Steiner 'remains fully committed to driving the company's strategy, operations and growth initiatives throughout this period.'
Challenges and Share Performance
Ocado has gone through a rough patch, with its North American partners – Kroger in the US and Sobeys in Canada – announcing the closure of robotic warehouses after demand proved weaker than expected. Ocado is looking for new partners. Its shares have lost more than 50% of their value in the past year, and in February Ocado said it would slash 1,000 jobs as part of efforts to cut costs. Ocado said last month it was engaged in long-term succession planning after Sky News reported that Niklas Heuveldop, the chief executive of Vonage, a subsidiary of Sweden's Ericsson, had been sounded out for the role.
Steiner's Stake and Compensation
Steiner holds a 2.35% stake in Ocado. He has led the company through deals with Morrisons and M&S and a recent tie-up with Asda, but has also faced shareholder unrest over his pay. He has collected nearly £100m since the online grocery company floated on the stock market in 2010, even though its share price is now below its flotation level.
