Ocado’s chairman, Adam Warby, is advancing plans for the succession of CEO Tim Steiner despite opposition from some shareholders, highlighting ongoing tensions within the company’s leadership. The board is scheduled to meet this weekend to discuss the matter, though no final decision on Steiner’s future has been made.
While the board agrees on the necessity of a succession plan, there remains disagreement over the timing of any leadership transition. A source close to the board noted that the question is not if there will be a successor to Steiner, who co-founded Ocado in 2000, but when that change will occur. The company is expected to release its half-year results on July 16, potentially facing scrutiny over the CEO’s role during the earnings call.
Warby is reportedly confident the board can settle on a leadership strategy without a drawn-out public dispute. However, some shareholders have expressed dissatisfaction with his approach, with a top-ten investor formally requesting Warby’s removal as chairman. According to a letter seen by industry observers, shareholders holding around a quarter of Ocado’s shares support this move.
The leadership disagreement is viewed by some insiders as a struggle for control between the CEO and the chairman. Steiner’s tenure coincided with the company’s rapid growth, particularly during the COVID-19 pandemic when online grocery shopping surged and Ocado’s market value exceeded £20 billion. However, since that peak, the company’s value has declined sharply by approximately 90 percent amid slower online sales and challenges in securing and maintaining technology partnerships.
Two major North American partners, Kroger in the United States and Sobeys in Canada, have announced plans to reduce reliance on Ocado’s robot-operated warehouses, a core element of its technology platform. Other partners like the UK retailer Asda, which signed a deal with Ocado in late May, and Japanese retailer Aeon, a customer since 2019, have reportedly expressed concern about the ongoing boardroom instability.
Some executives familiar with Ocado have suggested a need for a new leadership approach, noting that Steiner may have struggled to adapt to evolving market conditions. Speculation intensified after reports emerged that Niklas Heuveldop, CEO of the Swedish telecom firm Vonage, had been considered as a potential successor. This move was met with resistance from Steiner and certain investors, including board member Jörn Rausing, who holds over 10 percent of the company and is believed to favor a swift leadership change.
Ocado declined to comment on the current situation, referring instead to a June statement emphasizing that the CEO and board regularly engage in long-term succession planning and maintain dialogue with potential candidates. As the company prepares for its upcoming financial reporting, stakeholders await clarity on one of Ocado’s most significant leadership decisions in recent years.