Ocado's shares have plummeted by more than 50% in the past year, eroding billions from the value of this e-commerce leader. Against this backdrop, co-founder and long-serving CEO Tim Steiner will step down from his leadership position in 2028, paving the way for a new era at the company.
Steiner, who founded Ocado with two former Goldman Sachs colleagues in 2000, will remain at the helm until December 2027, when the 2028 financial year begins. During this period, the board aims to appoint a successor and implement a smooth transition of leadership responsibilities. In a newly created 'founder role', Steiner will continue to provide strategic guidance and market expertise to Ocado for an additional year after his departure as CEO, until December 2029.
The move follows reports that billionaire shareholder Jörn Rausing and chairman Adam Warby had attempted to remove Steiner from his post. These efforts were reportedly met with resistance from some long-term investors, who have been critical of the company's recent financial performance. Warby, a seasoned executive with a background in headhunting, took over as chairman in December 2024.
Ocado, renowned for its innovative automated warehouse technology, has been navigating a challenging period. The company's North American partners, Kroger and Sobeys, have closed their robotic warehouses due to lower-than-anticipated demand, prompting Ocado to seek new partnerships to mitigate these setbacks. In response to the financial pressures, Ocado announced job cuts of 1,000 staff in February as part of a broader cost-reduction strategy.
Steiner's departure has sparked renewed attention on his remuneration package, which stands at nearly £100m since Ocado's 2010 stock market flotation. Despite this, the company's share price remains below its initial listing level, fuelling shareholder discontent and raising questions about Steiner's future role within the business.
Ocado has secured significant deals with UK retailers like Morrisons and M&S, as well as a recent collaboration with Asda. However, these achievements have done little to offset the company's declining share price and growing investor concerns. The appointment of a new CEO will be closely watched by investors, who will be eager to see how Ocado navigates its next phase of growth.