Ocado’s co‑founder and chief executive, Tim Steiner, has stated that he has no intention of exerting undue control over the company’s staff, dismissing suggestions of a “puppet master” role amid a boardroom dispute over succession planning at the grocery technology firm.
Tim Steiner, who is scheduled to step down as chief executive in 2028, indicated that a successor would be receptive to maintaining his involvement.
Shares in Ocado fell almost 15 % to their lowest point in more than a decade on Thursday after the company reported pre‑tax profits of £17 million for the six months ending 31 May, a sharp decline from £607 million a year earlier.
A trading statement attempted to downplay reported boardroom tensions surrounding Mr Steiner, with no comment from chairman Adam Warby. Reports suggest that Mr Warby has begun a search for a new chief executive without consulting Mr Steiner.
Ocado announced last week that Mr Steiner will relinquish the CEO position in two years while remaining in a “founder role” for an additional year, offering strategic guidance, market expertise and board support through 2029.
On Thursday, Mr Steiner said he would be prepared to stay longer if those leading the business desired his continued presence.
He added: “Anyone I have discussed the role with—whether inside or outside the company—has expressed willingness to retain some of my involvement, particularly in client relationships, given my 26½ years of experience solving these challenges.”
“I have no intention of being a puppet master and controlling everybody. I will be there to support them and give clients ongoing certainty of my involvement and how we can help them,” he said.
The succession plan followed weeks of speculation and rumours about the online grocer’s leadership, which had been fueled by a decline in its stock market valuation over the past year.
Mr Steiner, who co‑founded Ocado in 2000 with two former Goldman Sachs bankers, said on Thursday he remained “fully committed to leading Ocado through the next phase” and insisted the business was “on a good path”.
He declined to comment on Mr Warby’s position, who assumed the chairmanship in 2024, or on whether the two could continue to work together.
Mr Steiner, who has earned roughly £100 million in compensation from Ocado since its 2010 flotation, insisted that he was “not standing in the way” of appointing a new chief executive.
“It’s an exciting time,” he said, noting that the business still expects to generate positive cashflow by its year‑end in November.
Ocado anticipates signing up new clients in the United States within the next six to twelve months, while existing clients are experiencing robust growth. He also noted that Ocado is set to open robot‑run distribution centres for clients in South Korea and Japan, with a facility in Phoenix, Arizona, expected to launch this year.
He added that additional UK facilities will likely be required from 2028 as the retail joint venture with Marks & Spencer continues to expand rapidly, with half‑year sales rising 15 % to £1.76 billion.
Adam Vettese, a market analyst at the trading platform eToro, commented: “The group remains loss‑making, with cash burn still evident, albeit improving, and international technology adoption has continued to lag following earlier partner setbacks.”
“With the shares already down almost 30 % year‑to‑date and trading near multi‑year lows, the negative reaction underscores ongoing concerns about execution and the timeline to achieve cashflow positivity.”
