Ocado investors are calling for the removal of chair Adam Warby, as a boardroom battle over the future of founder and chief executive Tim Steiner intensifies.
One of the firm’s leading shareholders has written to the board demanding Warby’s removal. The letter is understood to warn that investors representing around a quarter of Ocado’s shares support his exit, following reports of an attempt to accelerate succession plans for Steiner.
The backlash comes after Warby and Ocado board member Jörn Rausing, a major shareholder and Tetra Pak billionaire, were said to have driven a push to identify a replacement for Steiner.
However, one person familiar with the situation told the FT that Warby had the full support of the board for long-term succession planning.
The row has triggered a furious response from parts of Ocado’s shareholder base, with multiple top-10 investors understood to have written to the board backing Steiner’s continued leadership.
While some investors accept that Ocado needs to develop a succession plan, they are said to want the process handled over a longer period and in collaboration with Steiner.
Two investors told the FT that even if Steiner eventually steps back as chief executive, they would want him to remain involved in an advisory or technology-focused role.
One shareholder warned the board that if it continued trying to remove Steiner, Warby and other directors could face a vote of no confidence at a shareholder meeting.
Another investor said: “As owners of the company we think that Tim is the best person to lead it.”
The dispute comes during a difficult period for Ocado, whose shares have fallen more than 90 per cent over the past six years.
Shares were trading at 188p on Thursday, giving the business a market value of around £1.59bn. That is sharply below the 2,817p level reached in 2020, when demand for online grocery delivery surged during the pandemic.
The company has since faced a series of setbacks, including US grocery partner Kroger closing robotic warehouses and a wider slowdown in online grocery demand after pandemic restrictions eased.
Ocado has been focusing on securing more technology partnerships following the expiry of exclusivity agreements in the US and UK.
It recently signed a software licensing deal with Asda to support online order fulfilment from stores.
The boardroom row has drawn comparisons with JD Sports, where chair Andy Higginson stepped down earlier this year after trying to replace chief executive Régis Schultz. In that case, the wider board and major shareholder Pentland Group backed Schultz.
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