Ocado founder Steiner set to quit as boss after board coup
Ocado chief executive Tim Steiner will quit the business he founded as part of a replacement plan masterminded by chairman Adam Warby.
The FTSE 250 firm, which offers online shopping and warehouse automation services, said on Monday that Steiner will depart at the start of its 2028 financial year. Ocado’s share price fell nearly five per cent on the news, to 175p.
Last month, it emerged that Warby was devising a succession plan for Steiner, who jointly founded the group in 2000 and led its stock market debut in 2010.
The chairman, who formerly led headhunter Heidrick & Struggles, has already approached Niklas Heuveldop, the chief executive of Vonage, a subsidiary of Swedish telecoms firm Ericsson, for the top job, according to reports.
The pressure on Steiner was met with resistance by some shareholders, who called instead for Warby to quit. But Warby’s position on the board is secure, it is understood.
Chairman prevails in succession plan
Ocado said on Monday that Steiner “remains fully committed to driving the Company’s strategy, operations and growth initiatives” in the remainder of his time as chief executive.
The company said that Steiner will “transition into a founder role” following his departure as boss, providing “strategic guidance, deep market expertise and support” to its board and management.
Steiner is committed to returning Ocado to a positive cash flow position before he departs, City PM understands.
Ocado said it expects to appoint a successor before the start of its next financial year, which kicks off in December 2027.
The battle over control of the company kicked off when the firm’s share price was languishing at historic lows, having shed 90 per cent of its value in the last five years.
US partners ditch Ocado tech
The stock debuted at 180p and rocketed to highs of more than 2,000p in 2021, but has recently returned to the value at which it floated more than 15 years ago.
In recent years, the firm has focused on providing robotic technology services to be used in the warehouses of leading retailers and supermarkets.
But the firm’s recent struggles were exacerbated in November, when the group’s US partner, Kroger, announced the closure of three of its warehouses using Ocado’s equipment.
In February, the group’s shares shed 10 per cent after it warned of “significant” job cuts and said it is on the hunt for new partners after Kroger stepped away from some of its Ocado warehouses.
Steiner, who owns two per cent of Ocado, founded the group with two former Goldman Sachs colleagues as an online grocer, before repositioning the firm as a warehouse technology company.