Ocado is lining up a potential replacement for its chief executive Tim Steiner, who is also the co-founder of the technology and online grocery group.
A headhunting process is being led by Ocado chairman Adam Warby, according to reports by Sky News over the weekend.
Niklas Heuveldop, the chief executive of Vonage, a subsidiary of Sweden’s Ericsson, had been approached about taking on the role from Steiner, the report said.
However, it was not clear how advanced the discussions are or if Heuveldop is the preferred candidate for the role.
“Ocado Group plc notes the recent speculation regarding its chief executive officer succession planning,” a statement from Ocado to the stock exchange said this morning.
“Ocado confirms that the CEO and the board continually engage in long-term succession planning and regularly engage with potential candidates.”
Steiner set up Ocado Group with former Goldman Sachs colleagues Jonathan Faiman and Jason Gissing in 2000. He led it to a float on the London Stock Exchange in 2010, with shares soaring to highs of almost 3,000p during the pandemic.
However, increased scepticism about the viability of its technology offering to deliver a sustainable profit has seen the stock lose 91% of its value over the past five years. The announcement in November that US grocer Kroger planned to close three of its Ocado-operated warehouses saw the stock plunge to a 12-year low.
A new deal signed with Asda last month provided some relief, but shares currently sit at the same 180p level as the 2010 float, valuing Ocado at just £1.5bn.
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