Ocado met with shareholder dissent over exec pay

Ocado shareholders
// 1/4 of Ocado shareholders rebel against executive pay during AGM
// Incentive scheme for the CEO to collect £100m in the next 3 years also met with opposition
// Ocado to now engage with investors over future incentive plans

Around a quarter of shareholders voted against Ocado’s remuneration policy and report during the online grocery retailer’s AGM yesterday.

While all resolutions still passed, Ocado was met with opposition from 25.4 per cent of investors on the directors’ remuneration report.

On the other hand, 24.2 per cent of shareholders voted against the directors’ remuneration policy.

A proposed longterm incentive scheme, in which chief executive Tim Steiner would be paid £100 million provided Ocado share price triples over the next three years, was also voted down by 24.3 per cent of shareholders.

Ocado responded by saying it recognised the dissenting votes and had “carried out an extensive shareholder consultation exercise with its largest shareholders and the representative bodies” in preparation for its 2019 remuneration proposals.

It added that made changes to the operation of its remuneration proposals in response to shareholder consultation.

“The board believes that as a result of the consultation exercise it understands the reasons why some shareholders were not supportive of the remuneration proposals,” Ocado remuneration committee chairman Andrew Harrison said.

“We will continue to engage with shareholders on remuneration and governance matters and are committed to consulting on the formation of the future remuneration policies.”

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