Ocado CEO Tim Steiner to step down in 2028

(Sharecast News) - Ocado said on Monday that chief executive officer Tim Steiner will step down in 2028.

Updating on the next phase of its long-term leadership transition, the company said Steiner will continue to serve as CEO through the start of the 2028 financial year and remains "fully committed to driving the company's strategy, operations and growth initiatives throughout this period". He will also continue to be actively involved with Ocado through 2029.

Ocado said the succession planning process is expected to conclude around the start of the 2028 financial year. "During FY27 and up to the completion of the succession process, Tim will continue leading the business as CEO while working closely with the board to identify and prepare the next generation of leadership," it said.

"Together, they will ensure a smooth and orderly transition of executive responsibilities, maintaining continuity for colleagues, clients and shareholders."

Following the appointment of a successor, Steiner will transition into a founder role. "In this capacity, he will continue to provide strategic guidance, deep market expertise and support to the board, management team and customers through 2029, helping to advance the company's long-term ambitions and strengthen its relationships across the industry," Ocado said.

Reports emerged last month that Ocado was preparing to appoint a successor to Steiner following a weak share price performance. According to Sky News, which cited a technology industry source, Niklas Heuveldop - the chief executive of Vonage, a subsidiary of Sweden's Ericsson - had been sounded out about taking over from Steiner.

At 1015 BST, the shares were down 2.1% at 179.90p.

Dan Coatsworth, head of markets at AJ Bell, said: "The market is behaving oddly towards Ocado. First, the shares fell on speculation that the group would replace CEO Tim Steiner. They've now fallen again on confirmation that he is staying for another year or so while the board looks for a longer-term successor. He will then act as a consultant under a 'founder' role.

"There have been rumours of heated conversations behind closed doors between large shareholders and the board. Last week there was speculation that certain shareholders were upset at chair Adam Warby seeking to replace Steiner.

"Even though Steiner has struggled to keep Ocado on a sustainable growth path in recent years due to client setbacks, he is a co-founder of the business and knows it inside and out. Certain investors might have taken the view that's a useful quality during uncertain times for the business.

"Now that Steiner is staying for the near-term, the attention will turn to Warby and whether he can keep his job. Friction in the boardroom is unsustainable, and it seems unlikely that the chair can stay put after hostilities were all over the news."

See latest RNS on Investegate