Major shareholders at Ocado are split regarding the future of CEO Tim Steiner. While the board had reportedly been preparing to announce Steiner's departure, opposition from some key investors has led to further discussions. Several top 10 investors have written to the board to express support for Steiner, who co-founded Ocado 26 years ago and has been central to its evolution from an online grocer to a global grocery technology provider. These supporters are concerned that an abrupt exit could destabilize the business at a critical point in its turnaround, valuing his deep knowledge of the company's automation platform.
Conversely, a push to accelerate succession planning has been led by chair Adam Warby and board member Jörn Rausing, who holds a 10.4% stake. The company's share price has fallen sharply from its pandemic highs, down nine-tenths from a 2020 peak, and sits close to its 2010 float price. Investor confidence has been hit by setbacks, including US partner Kroger closing three Ocado-powered fulfillment centers due to weaker-than-expected performance, and an ongoing dispute with Marks & Spencer over a $190 million payment. These factors have contributed to shareholders enduring a 91% drop in share value since the pandemic-driven peak five years ago.
The board has intensified its search for a new chief executive, reportedly approaching Niklas Heuveldop, the CEO of Vonage, as a potential candidate. Steiner's long tenure and central role have also been viewed as a governance risk by some. If Steiner were removed, shareholders with at least 5% of voting capital could attempt to call an extraordinary general meeting to challenge the decision. Some investors are said to prefer an amicable resolution that avoids a public fight, emphasizing the challenge Ocado faces in convincing investors that its technology model can deliver sustainable returns after years of heavy investment.
