Ocado Group has reached a tentative resolution to a recent boardroom dispute involving co-founder and chief executive Tim Steiner and chairman Adam Warby. After nearly two weeks of speculation and shareholder unrest, the parties agreed that Steiner will remain CEO for at least the next 18 months, with a planned transition to an advisory "founder role" through 2029. A successor is expected to assume the chief executive role by the start of the 2028 financial year.
The conflict centered on differing views over Steiner’s future leadership amid a significant decline in the company’s share price and strategic challenges. Since the pandemic, Ocado’s shares have dropped by more than 90%, closing near their initial public offering price from 2010. This downturn reflected setbacks including the reduction in business from Kroger, one of Ocado’s largest customers.
Warby, a former Microsoft executive who became chairman in 2024, led efforts to accelerate Steiner’s departure, citing concerns about the company’s strategic direction and financial performance. His campaign garnered support from certain major shareholders, notably board member and Tetra Pak heir Jörn Rausing. However, other significant investors strongly opposed a rapid leadership change, warning it could destabilize the company during a critical juncture. Several top-ten shareholders voiced support for Steiner, with at least one describing attempts to remove him as detrimental to shareholder value.
Insiders described the dispute as a rare and intense governance clash between a CEO and chairman, taking place against the backdrop of Ocado’s ongoing efforts to pivot from a large customer fulfilment center (CFC) model to smaller, store-based automation solutions—a shift currently lacking scalable success. Analysts noted that finding a replacement for Steiner will be challenging, given his foundational role and the complexities facing the business.
The episode highlights the tension common in companies where a long-serving founder remains entwined with organizational identity. While some view the chairman’s push for succession as an exercise in prudent governance, others caution that removing a visionary founder during a downturn may exacerbate the company’s difficulties. The chairman’s position and tenure remain uncertain following the settlement, and both Warby and Steiner are expected to jointly present Ocado’s upcoming half-year results.
Steiner has led Ocado since its founding in 2000, transforming it from an online grocery start-up into a diversified technology group. Despite recent challenges, his supporters argue that his long-term vision remains critical to the company’s future prospects. As the company prepares for leadership change, shareholders and observers will be closely watching how Ocado navigates this transitional period while seeking to restore growth and investor confidence.