Major shareholders in Ocado are resisting plans to replace CEO Tim Steiner, who co-founded the company 26 years ago. This opposition arose after the online grocery and technology group confirmed it was engaging in long-term succession planning and reportedly preparing to announce Steiner's departure. Several top 10 investors have written to Ocado's board to express their support for Steiner, with some concerned that a sudden exit could destabilize the business during a crucial turnaround period. The Financial Times reported that the push for accelerated succession planning was led by chairman Adam Warby and board member Jörn Rausing, who holds a 10.4% stake in Ocado.
Steiner's deep knowledge of Ocado's automation platform is considered a significant asset by his supporters, despite previous concerns about his central role posing a governance risk. Investors are wary that removing him now could be detrimental, especially given that Ocado's share price has fallen sharply from its pandemic highs and recently hit a 12-year low. His leadership has seen Ocado shift from an online grocer to a global grocery technology provider, pioneering online delivery in the UK and licensing its automated warehouse technology worldwide.
The debate over Steiner's future highlights the challenge Ocado faces in convincing investors that its technology model can deliver sustainable returns after substantial investment. The company has recently faced setbacks, including US partner Kroger closing three Ocado-powered fulfillment centers due to weaker-than-expected performance, and a £190 million dispute with Marks & Spencer, its retail joint-venture partner. However, Ocado also recently secured a software deal with Asda to support its online grocery and home delivery operations. Shareholders could attempt to call an extraordinary general meeting to challenge Steiner's removal if it were to proceed, as UK company law allows shareholders with at least 5% of voting capital to request such a meeting.
