Ocado has confirmed that Tim Steiner will remain as chief executive for at least 18 months before stepping down in the 2028 financial year following a boardroom battle.
In an update to investors, Ocado said it had concluded that Steiner would stay in his position ‘through the start of the 2028 financial year… [and] also continue to be actively involved with the company through 2029.’
Ocado boss Tim Steiner will transition to an advisory role from 2028
It offers some respite for long-term investors who last week called for chairman Adam Warby to step down after it was reported that he had proposed Steiner be ousted.
Warby and board member Jorn Rausing were reportedly seeking a replacement for Steiner after a slump in its share price.
Shares in the FTSE 250 firm have fallen by more than 90 per cent over the past five years, as new openings with existing partners and further technology deals have failed to materialise.
Ocado shares fell 3 per cent this morning to 178p.
Warby reportedly approached Niklas Heuveldop, the boss of Ericsson-owned telecoms company Vonage, as a potential successor.
However, an unnamed investor wrote to Ocado’s board last week claiming that shareholders controlling around a quarter of Ocado’s shares want Steiner to stay.
Multiple shareholders told the board they do not want an immediate change in leadership and would want Steiner to remain in an advisory or technology role if he steps back as boss, according to a report in the Financial Times.
Steiner, a former Goldman Sachs bond trader, has led the company for 26 years since he founded the business in 2000 alongside former colleagues Jason Gissing and Jonathan Faiman.
Ocado today confirmed it expects to appoint a successor before the start of its next financial year, in December 2027.
Dan Coatsworth, head of markets at AJ Bell said: 'Even though Steiner has struggled to keep Ocado on a sustainable growth path in recent years due to client setbacks, he is a co-founder of the business and knows it inside and out. Certain investors might have taken the view that’s a useful quality during uncertain times for the business.
'Now that Steiner is staying for the near-term, the attention will turn to Warby and whether he can keep his job. Friction in the boardroom is unsustainable, and it seems unlikely that the chair can stay put after hostilities were all over the news.'
DIY INVESTING PLATFORMS
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you
