Ocado boss Tim Steiner’s pay jumped in 2013

Ocado has handed CEO Tim Steiner a pay package of more than £1m for the first time.

In its annual report out today, Ocado revealed that Steiner had received pay totalling just over £1m in 2013 – more than double the £483,000 he earned the year before.

The package included basic pay of £451,000 and performance-related pay of £560,000.

Other directors all received substantial pay increases.

Outgoing commercial director and co-founder Jason Gissing saw his pay rise from £330,000 to £608,000 and CFO Duncan Tatton-Brown, who joined in September 2012, earned £627,000.

Under the company’s long-term incentive plan, which was approved at the 2013 agm, the directors were also awarded substantial quantities of shares – subject to meeting profit targets for the year ending November 2015.

CEO Tim Steiner received 1.37 million shares – which is worth the equivalent of £7.7m at today’s share price. His direct shareholding is currently worth £78.5m.

Ocado is proposing to lower the potential awards applicable to 2013/2014. Under the plans, the bonus potential will be reduced from 400% to 125% for Steiner and from 280% to 100% for other executive directors.

After the tie-up with Morrisons, Ocado shares have rocketed in value, rising more than 400% to 547p over the past year.

Despite the appreciation in share price, Ocado has yet to make a profit. The online grocer reported a full-year loss of £12.5m for 2013 – compared with a loss of £0.6m the year before.

Today, Ocado also reported first-quarter trading figures, which showed that retail sales rose 18% to £218.8m. It also said the rollout of Morrisons.com was progressing well.