30% of Ocado shareholders revolt over CEO bonus plan

Foods &AMP Drink

6 May well, 2022 | by The Retail Bulletin

Ocado shareholders have protested towards significant pay out for directors at the on the internet grocery specialist, with almost 30% voting against a prepare to fork out the ceo, Tim Steiner, up to £100m above the next five a long time.

Just underneath 30% of Ocado shareholders voted in opposition to its directors’ plan fork out at the yearly basic assembly on Wednesday. A similar proportion voted from a three-12 months extension of Ocado’s “value creation plan”, less than which Steiner can earn up to £20m a calendar year and other executives up to £5m each.

The extension of the plan to 2027 arrived after the business missed a share price target that would have brought on a £20m reward for Steiner in March. Ocado’s share price tag has fallen by additional than two-thirds to about 890p from a peak in January 2021, as the surge in on the internet grocery purchasing throughout the pandemic has quickly unwound.

The plan  was announced in 2019 and was originally intended to operate for five a long time until 2024. A significant proportion of the group’s shareholders tried to block the offer in 2020, when 30% voted versus it, whilst about 13% voted towards past calendar year. The deal replaced an previously large-having to pay plan that also proved controversial.

The most up-to-date pay proposals had been criticised by the investor advisers Glass Lewis and Institutional Shareholder Companies. The proposal has prompted grievances from Ocado’s shareholder Royal London Asset Administration (RLAM).

RLAM stated it had severe problems about the benefit development program, including that it was an “example of how inadequately made incentive plans” could “lead to too much awards for management”.

Ocado mentioned just after the AGM: “The board understands the issues of some shareholders around the non-common mother nature of the VCP, which was reflected in the votes on Resolutions 2 and 20. However, it proceeds to believe that the adjustments proposed and accredited present the very best way to generate outstanding and sustainable advancement, although also worthwhile small-time period operational and strategic decisions.

“The Remuneration Committee will continue to keep the operation of the VCP and all other facets of govt remuneration below overview and will proceed to engage with shareholders to have an understanding of their perspectives and considerations.”