In an update of the results after its general meeting on Wednesday (May 4th), Ocado revealed that the policy received 184,973,188 votes against its implementation – equivalent to 29% of shareholders. He also revealed that a similar number also voted against his “value creation plan”, a bonus scheme that awards 2.75% of each shareholder’s value over a certain obstacle to CEOs and other senior executives.
The scheme, which was extended until 2027, will allow Steiner to earn up to £ 20 million a year if certain share targets are met. This comes after the company missed the share price target, which would trigger a bonus payment for Steiner in March.
Okado said: “As part of the development of the Remuneration Policy for the next three years, the Chairman of the Remuneration Committee has undertaken an extensive program to engage with our largest shareholders and representative bodies to contribute to the proposed changes.
“Many of our largest shareholders understood the strategic rationale for continuing to operate a non-standard long-term leverage incentive plan at Ocado and expressed their support for our proposals to extend the scheme after the initial five-year term.”
He continued: “In particular, shareholders recognized the challenges of international recruitment and competition for talent in the technology sector. In addition, the Committee notes that Ocado’s remuneration policy continues to seek to set a fixed pay to the bottom quartile of the market and to offer significant comparative remuneration (through our incentives) for transformational outcomes.
… The Board understands the concerns of some shareholders about the non-standard nature of the VCP, which was reflected in the vote on Resolutions 2 and 20. However, it continues to believe that the proposed and approved changes offer the best way to manage exceptional and sustainable growth, while rewarding short-term operational and strategic decisions. “