Ocado's chief executive, Tim Steiner, has come under fire as shareholders express discontent over his hefty £15 million pay package. The online grocery giant, headquartered in London, has faced financial turbulence, prompting questions about executive compensation.
Shareholder Discontent
At the company's annual general meeting, nearly 20% of shareholders voted against Ocado's remuneration report. Critics argue that Steiner's pay is excessive, particularly as the company reported a £394 million pre-tax loss last year.
Steiner's Defence
Steiner defended his compensation, stating that it reflects long-term performance incentives tied to Ocado's future growth. "Our remuneration policy is designed to align leadership with shareholder interests," he said.
Market Challenges
The backlash comes as Ocado struggles with rising operational costs and fierce competition in the online grocery sector. Despite partnerships with major retailers like Marks & Spencer, the company has yet to turn a consistent profit.
Investor Sentiment
Analysts suggest that the shareholder revolt signals growing impatience with Ocado's financial performance. "Investors want to see tangible results before endorsing such high payouts," said one industry expert.
