// Ocado is being criticised for “excessive” pay after CEO Tim Steiner’s near-£7m windfall
// Advisory firm Glass Lewis has urged investors to reject pay proposals at the annual meeting
Ocado is reportedly facing a shareholder backlash over “excessive” pay after chief executive Tim Steiner’s near-£7 million windfall.
Advisory firm Glass Lewis has urged investors to reject pay proposals at the annual meeting in the next fortnight.
It criticised Ocado and said there was too much focus on the “shareholder value creation” rather than underlying performance, The Telegraph reported.
READ MORE: How will the Ocado deal pan out for M&S?
It also said it has “severe reservations” about a controversial bonus scheme pegged to Ocado’s share price, which has rocketed by 676 per cent to £21 in the past five years.
Glass Lewis said there was too much focus on the “shareholder value creation”, which is subject to market forces, rather than the underlying performance of the business and management.
Ocado awarded a £58 million pay packet to Steiner in 2019 and is expected to give him a bonus of up to £100 million over five years if the shares continue to rise.
He earned £6.9 million last year.
Glass Lewis has also told investors to oppose the reappointment of chairman of the remuneration committee Andrew Harrison.
It said it had concerns around the base salary of the new finance chief Stephen Daintith, who will receive an annual sum of £550,000.
A total of 29 per cent of shareholders voted against Ocado’s previous remuneration report.
Ocado said its pay schemes are approved by shareholders and only deliver above-market payouts for “the delivery of above-market, outstanding results”.
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