The chief executive of Ocado has seen his pay jump despite continuing heavy losses at the technology and grocery platform.
Tim Steiner took home more than £2.6m for his company’s latest financial year, a rise from the £1.9m he was awarded in the prior 12 months.
The increase was mainly driven by a rise in the CEO’s assignment incentive pay which went from £1.1m to £1.7m.
The pay rise comes after Ocado reported another year of heavy losses despite a strong performance in its online delivery arm.
The London-listed business posted a pre-tax loss of £374.5m for the year to 1 December, 2024, after also losing £393.3m in the previous period.
The losses came despite Ocado’s overall revenue rising by 14.1 per cent to £3.1bn.
At the time, the company said revenue growth was driven by a 12.5 per cent increase in orders on Ocado.com and a 12.1 per cent increase in active customers.
It also said that it expects to grow sales volumes “well ahead of the market”, with 10 per cent revenue growth this year.
Shares in Ocado dropped sharply following the release of its annual results from 333p to 226p before recovering slightly.
Before that slump, Ocado’s share price had dropped nearly 90 per cent in the last four years, with analysts concerned that the grocer has been underperforming.
Tim Steiner’s pay hit the headlines last year when Ocado faced criticism as it sought shareholder approval for a potential bonus worth up to £14.8m for its CEO.
The business put forward a proposal, which was ultimately approved at its annual general meeting in 2024, which could see its chief executive receive a bonus worth 1,800 per cent of his then-base salary of £824,570.
The bonus would be paid out if Ocado’s share price hits £29.69 in 2027 and other performance targets are met.
The company’s share price last reached £29 during the pandemic but has since fallen back.
Ocado’s annual report comes amid an ongoing legal battle between itself and M&S.
‘Solid performance in a challenging environment’ for Ocado
Writing in its annual report, remuneration committee chair Julie Southern said: “During the period, Ocado made substantial operational and strategic progress and delivered a solid financial performance.
“We saw strong revenue growth and a strong improvement in adjusted EBITDA [earnings before interest, taxes, depreciation, and amortisation].
“Group underlying cash flow improved significantly during the year driven by adjusted EBITDA growth in technology solutions and Ocado Retail, capex reductions and targeted cost control.
“I am particularly encouraged that we are on track to turn cash flow positive during FY26. The share price remained flat in the year.
“Our incentive outcomes reflect this solid performance in the context of a challenging environment.”