Ocado boss Tim Steiner receives green light for £15million bonus
OCADO boss Tim Steiner is the latest chief to bag a bumper pay rise — as debate rages about the gap between big earners in the UK and US.
Around 80 per cent of shareholders yesterday gave the green light to Mr Steiner receiving a £15million bonus.
The pay boost for the online grocer has extra spice given the recent debate whether Ocado would be valued higher if it was instead listed in New York.
Brit bosses also complain they are paid much less than their American peers.
Chief executives of US-listed firms earn an average £12.5million compared to UK bosses who earn an average £4.5million, according to recent research.
Mr Steiner’s £15million award, worth 1,800 per cent of his basic £824,570 salary, will be paid out if Ocado’s share price hits £29.69 in three years time.
He will still receive £5million if he hits other targets, but fails to boost the share price.
The online grocer’s share price hit £29 in 2021 when investors mistakenly bet on the belief that the pandemic online shopping boom would last forever.
It has since crashed to 355p-a-share, valuing the firm at £2.9billion.
The vote on Mr Steiner’s pay at Ocado’s annual meeting saw a smaller rebellion from investors then in previous years.
In 2020 there had been 30 per cent trying to block his £59million package.
Glass Lewis, a shareholder advisory firm, had urged investors to vote against Mr Steiner’s “excessive remuneration”.
Ocado said it was putting the new pay plan in place because “unprecedented volatility” in its share price meant its previous bonus scheme was “no longer motivating”.
In other words, the share price has tumbled so low that it is now perceived as being impossible for bosses to hit targets.
The boss of the London Stock Exchange, David Schwimmer, had his £11million pay packet approved last week.
He has called for British bosses to be paid more to close the gaps with the Americans.
Meanwhile Astrazeneca chief Pascal Soriot has defended his £18.9million package — saying it was important European drug companies did not fall behind their US rivals.
TESCO’S A.I. DEAL
TESCO is beefing up its Clubcard promotions after striking a deal with artificial intelligence firm Eagle Eye.
It will soon roll-out online games, called Clubcard Challenges, that will give customers the chance to win up to £50 in loyalty points to be used on groceries.
More than 21million UK households have a Clubcard and they are used in 80 per cent of transactions.
Analysts say Tesco can make £250million just by selling the customer data it gathers to sell to advertisers such as UNILEVER and COCA-COLA.
MORE TO SPEND
PAY rises and falling inflation has helped average households grow their disposable income compared to last year, according to ASDA’s Income Tracker.
Gross income grew by 10.1 per cent last month to £233, meaning the average home is £21.50 better off than March 2023. Economist Sam Milney said it was helped by falling energy costs and NI cuts.
It came as BRC Nielsen IQ Index figures show shop price inflation eased to 0.8 per cent in April — down from 1.3 per cent in March.
Food inflation has slowed to 3.4 per cent.
RENTS outside London have hit a record £1,291 a month – 8.5 per cent higher than last year, says Rightmove.
Nearly 50,000 rental properties are needed to get back to pre-pandemic levels of available homes.
Agents get 13 enquiries per property.
£1.3BN MUSIC SHAK-UP…
TROUBLED music rights firm Hipgnosis yesterday accepted a £1.3billion improved bid off Blackstone the private equity partner of founder Merck Mercuriadis.
The $1.30-a-share bid for the owner to the back catalogues of the likes of Shakira, Red Hot Chili Peppers and Blondie, is just above the $1.25 tabled by US-based rival Concord Music last week.
Blackstone’s offer is 48.1 per cent above Hipgnosis’ share price a month ago, when its shares bottomed out on the back of governance and valuation concerns.
RE-SALER VINTED IN 1ST PROFIT
SECOND-HAND fashion site Vinted has toasted its first ever profit after a surge in users selling their unwanted wares.
The firm reported a 61 per cent rise in sales to £507million last year and swung into the black with net profits of £15.2million versus a loss of £17million the year before.
The cost of living crisis has prompted more people to raise cash by selling their unwanted clothes and save spending by buying pre-loved outfits.
Vinted now has more than 16million registered UK users with the second-hand online market expected to grow three times faster than traditional retail over the next five years.
Chief exec Thomas Plantenga said: “Second-hand fashion is still a relatively immature market and only a tiny proportion of fashion overall.”
He added the maiden profit was “not only proof that we can deliver strong growth but that we are at the forefront of a market with huge potential”.
GETIR TO GET OUT
RAPID grocery delivery service GETIR is pulling out of the UK — putting 1, 500 jobs at risk.
The firm, known for its purple and yellow clad scooter drivers, was valued at £9.5billion two years ago on the back of an online shopping boom.
It has never made a profit and spent £96million buying up rivals, such as GORILLAS, in a race to attract customers.
It said it will now focus its “financial resources” on its home market of Turkey.