Ocado's chief executive, Tim Steiner, has received a significant pay increase, despite the company's ongoing substantial losses.
His total compensation for the latest financial year exceeded £2.6m, a notable rise from the £1.9m he received in the previous 12 months, as reported by .
This increase is primarily attributed to a surge in his assignment incentive pay, which jumped from £1.1m to £1.7m.
The pay hike comes amidst Ocado's report of another year of considerable losses, with a pre-tax loss of £374.5m for the year ending December 1, 2024, following a loss of £393.3m in the prior period.
Despite these losses, Ocado's overall revenue saw a 14.1% increase to £3.1bn, driven by a 12.5% rise in orders on Ocado.com and a 12.1% increase in active customers.
The company has expressed optimism about its future performance, anticipating sales volume growth "well ahead of the market" and a 10% revenue increase this year.
However, the release of Ocado's annual results led to a sharp decline in its shares, from 333p to 226p, before experiencing a slight recovery.
This drop is part of a larger trend, with Ocado's share price having plummeted nearly 90% over the past four years, sparking concerns among analysts about the company's underperformance.
Notably, Tim Steiner's compensation made headlines last year when Ocado faced criticism for seeking shareholder approval for a potential bonus worth up to £14.8m for its CEO.
In 2024, the business proposed a plan, which was subsequently approved at its annual general meeting, that could result in its chief executive receiving a bonus equivalent to 1,800 per cent of his base salary of £824,570 at the time.
The bonus would be awarded if Ocado's share price reaches £29.69 in 2027 and other performance targets are achieved. The company's share price last hit £29 during the pandemic but has since declined.
The release of Ocado's annual report coincides with an ongoing legal dispute between the company and M&S.
Julie Southern, chair of the remuneration committee, commented on the company's performance in the annual report: "During the period, Ocado made substantial operational and strategic progress and delivered a solid financial performance."
She noted, "We saw strong revenue growth and a strong improvement in adjusted EBITDA [earnings before interest, taxes, depreciation, and amortisation]."
She further added, "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."
Expressing optimism about the future, she said, "I am particularly encouraged that we are on track to turn cash flow positive during FY26. The share price remained flat in the year."
She concluded by saying, "Our incentive outcomes reflect this solid performance in the context of a challenging environment."
