Ocado Group has announced that its co-founder and Chief Executive Officer, Tim Steiner, will transition out of his role by 2028. This decision follows an intense boardroom dispute regarding his future and the company's succession planning. A significant number of investors, representing approximately a quarter of Ocado's shares, had reportedly backed Steiner's continued leadership, with some warning of a vote of no confidence against Chairman Adam Warby and other directors if efforts to remove Steiner persisted. These investors largely believe Steiner is the best person to lead the company, and if he were to step down, they would prefer him to remain in an advisory or technology-focused capacity.
The push for an accelerated succession plan was reportedly led by Chairman Adam Warby and board member Jörn Rausing, a major shareholder with a 10.4% stake. However, the board stated that Warby had full support for long-term succession planning. Some investors expressed concern that an abrupt departure for Steiner could destabilize Ocado at a critical juncture, particularly given his deep knowledge of the company's automation platform. While some shareholders acknowledged the need for a succession plan, they preferred a longer, more collaborative process with Steiner.
The dispute comes during a challenging period for Ocado, whose shares have plummeted more than 90% over the past six years. The stock was trading at 188p recently, giving the company a market value of approximately $2 billion (£1.59 billion), a sharp decrease from its 2020 peak of 2,817p during the pandemic-driven surge in online grocery demand. The company has faced setbacks, including its US partner Kroger closing robotic warehouses and a general slowdown in online grocery post-pandemic. Ocado has been shifting its focus to securing more technology partnerships, recently signing a software licensing deal with Asda.
Steiner co-founded Ocado 26 years ago and has been instrumental in its evolution from an online grocer to a global grocery technology provider. His leadership has seen the company pioneer online grocery delivery in the UK and license its automated warehouse technology worldwide. Despite the innovation and international expansion, the company has struggled to deliver commensurate returns for investors, with its share price near its 2010 flotation level. The company is also involved in a $243 million (£190 million) dispute with Marks & Spencer, its UK retail joint-venture partner.
