Ocado facing opposition to £15m bonus for Tim Steiner

Ocado fell on Monday following a report over the weekend suggesting the company is under pressure over executive pay after an influential proxy adviser urged shareholders to vote against a new bonus scheme that could see boss Tim Steiner paid as much as £14.8m.

According to The Times, Institutional Shareholder Services has recommended that investors vote against the online grocer’s new remuneration policy and performance share plan at its annual meeting on April 29, citing "material concerns" over the sum of money executives could receive.

According to The Times, ISS said the potential amount on offer was "materially above market norms" and "not in line with UK market standards and investor expectations".

In a report circulated to clients, it identified the company’s remuneration as a "high concern", which it said was "exacerbated by the shareholder experience, with no dividend and a general decline in the company’s share price over the past few years".

The FTSE 100 company wants to set up an incentive scheme that could pay an award to Steiner worth as much as 1,800% of his £824,570 base salary if the share price reaches £29.69 in three years’ time and other performance targets are met.

Under the new proposals, Steiner would be able to receive an award worth 600% of his base salary, or almost £5m, even if targets for total shareholder returns and other performance measures are met but the share price goal is missed.

Ocado proposed the bumper award in its new remuneration policy, in which it said it was mindful of Steiner’s "unique position" as a founder of the company and his "longer-term focus and strategic vision".

Shareholders will be required to approve the revised policy.

At 1210 GMT, the shares were down 3.9% at 450.20p.