Ocado co-founder to step down as chief executive in 2028

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Tim Steiner, the co-founder and chief executive of Ocado, will stand down as chief executive in 2028, the company has announced. Steiner, 56, who co-founded the online grocery technology company in 2000 with two other former Goldman Sachs bankers, will continue as chief executive until the start of the 2028 financial year, which begins in December 2027. He will then stay on for another year in a “founder role”, providing “strategic guidance, deep market expertise and support” to the board through to 2029, according to a statement from the company.

Ocado said the board is “grateful for Tim’s continued leadership” and looks forward to working with him throughout the next chapter of the company’s development. The announcement comes after weeks of speculation over the online grocer’s leadership, following reports of a slump in its stock market valuation and efforts to find a successor.

Coverage comparison

Reports of Steiner’s departure have been consistent in their account of the timeline and the terms of his transition. Ocado has stated that Steiner will step down as chief executive in 2028 and then serve in a founder role for an additional year, a plan that was also reported last week when the company announced it was engaged in long-term succession planning.

The decision follows a difficult period for Ocado. Its shares have lost more than 50% of their value in the past year, and in February the company said it would cut 1,000 jobs as part of efforts to reduce costs. The share price has also fallen below its flotation level from 2010, according to analysis by the High Pay Centre. That analysis found that Steiner has received £94m in payouts since Ocado’s stock market listing, including share awards whose value is likely to have changed from the time.

The company has been in search of new partnerships after North American partners Kroger in the US and Sobeys in Canada announced the closure of robotic warehouses due to weaker-than-expected demand. Ocado also runs a UK online grocery venture with Marks & Spencer.

Key claims

• Steiner will step down as chief executive in 2028. The company confirmed that Steiner will continue in the role until the start of the 2028 financial year in December 2027, after which he will take up a “founder role” until 2029.
• Steiner’s compensation totals nearly £100m. Analysis of Ocado reports by the High Pay Centre, a campaign group, found that Steiner has received £94m in payouts since the 2010 floatation. This included nearly £59m in 2019, largely tied to a series of deals to sell its grocery-picking technology to foreign supermarkets.
• Ocado has approached potential successors. Ocado has reportedly approached at least one potential replacement for Steiner, according to reports that emerged before the formal announcement. Steiner himself has said that anyone he has spoken to about the possibility of the role is “more than happy” to keep some of his involvement in terms of relationships with clients.
• The share price has fallen significantly. Ocado’s shares have lost more than 50% of their value in the past year, and now sit below the level at which the company floated on the stock market in 2010.
• Ocado’s pre-tax profit dipped sharply. The company reported pre-tax profits of £17m in the six months to 31 May, down from £607m in the same period a year before.

Perspectives

Ocado

Ocado says the board is grateful for Steiner’s continued leadership and that he remains “fully committed to driving the company’s strategy, operations and growth initiatives throughout this period.” The company announced the succession plan as part of long-term planning, after reports that its chair Adam Warby and shareholder Jörn Rausing had attempted to oust Steiner following a slump in the share price, which prompted a backlash from long-term investors.

Tim Steiner

Steiner has said he has no intention of being a “puppet master” over staff, and that any successor would be happy to work with him. He expressed willingness to stay on longer if asked, and emphasised his continuing involvement in client relationships, given his 26 and a half years of experience solving challenges.

High Pay Centre

Paddy Goffey, head of research at the High Pay Centre, said Steiner’s pay trajectory illustrates a broader problem in the UK’s executive pay framework. He argued that compensation is increasingly shaped by sporadic, outsized awards rather than linked to genuine performance, and that the £59m figure in 2019 reveals incentive structures that are hard to reconcile with company performance or improvements in the working conditions and pay of employees. This, he said, raises serious concerns about proportionality, accountability and fairness in the pay-setting process.

Timeline

The announcement of Steiner’s departure comes after months of speculation. Ocado’s chair Adam Warby was appointed in December 2024, and had previously chaired headhunter firm Heidrick & Struggles. Reports suggested that he had begun searching for a new chief executive without consulting Steiner, prompting a backlash from investors. In February, the company said it would cut 1,000 jobs, and in the first half of the year it reported a sharp drop in profits. Ocado last month said it was engaged in long-term succession planning.