Ocado head honcho Tim Steiner bags huge bonus

Ocado boss Tim Steiner has picked up a £54 million bonus, despite the online retailer posting a £214.5 million loss last year.

This was almost five times larger than the £44.4 million loss recorded in 2018. Ocado blamed it on a fire which burned down one of its warehouses in Andover last February.

Steiner bagged the hefty bonus after an incentive scheme tied to the company’s share price paid out. He also received £4.7 million in salary and other bonuses, bringing his total pay in 2019 to £58.7 million.

Ocado has clocked up strong sales but not made a profit for three years. But in recent times it has struck partnerships with the likes of M&S and Kroger. Shares in the business have soared, green lighting a five-year growth incentive plan.

Some £88 million will be shared among its top executives through the scheme, with Luke Jensen, who runs Ocado Solutions, getting £6 million.

Peel Hunt’s analysts said in a note: “Despite the twists and turns in FY19, Ocado Group (OG) ended the year in line with revenue expectations, with EBITDA below as it invests for its future. We are excited about FY20. Sobeys and Casino’s first CFCs go live during the first half and we will see real revenues from OG’s raison d’être.”

“OG presented its second ‘most important slide ever’ at its accounting update, showing the margin potential of its new model. Its first ‘most important slide ever’ at H1 19 showed its TAM. Both keep us excited about the longer term.”

Not everyone is convinced, however. “So Ocado’s top brass are receiving an eye watering £88 million payday, £59 million is going to boss Tim Steiner. Just a reminder that the company posted a £214m loss today but is valued at £8.9 billion. Proper marmite stock,” tweeted The Times journalist Ashley Armstrong.