Almost 20% of Ocado shareholders voted against the firm’s remuneration policy however its plan to offer boss Tim Steiner a potential bonus of up to £14.8m is set to go ahead.
The incentive plan could see the Ocado founder earn as much as 1,800% of his £824,570 base salary if the company’s share price reaches £29.69 in three years’ time and if other performance targets are met. Ocado shares currently trade at less than £3.60.
If the share price goal is missed but other performance and total shareholder return targets are met, then Steiner would receive an award worth 600% of his base salary, worth £5m
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Ocado chair of the remuneration committee Julie Southern said in the company’s recent annual report that the new scheme “offers substantial comparative reward for transformational performance while migrating to a structure that will be more motivating and retentive for executives”.
Prior to the AGM there was concerns the retailer would face a revolt over the hefty potential bonus.
Shareholder advisory group Glass Lewis had called on investors to vote against the online group’s “egregious remuneration practices”.
Back in 2022, almost a third of votes cast at Ocado’s AGM went against its proposed bonus plan that would see Steiner take home £100m over the next five years if share price targets are met.
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