Shareholders express discontent over CEO’s potential bonus
- Almost 20% of Ocado shareholders voted against CEO’s £15m bonus
- CEO Tim Steiner could earn up to 1,800% of his base salary
- Share price goal is £29.69, but currently trading at less than £3.60
- If share price goal is missed, Steiner would still receive an award worth £5m
- Concerns over the hefty potential bonus were raised prior to the AGM
Almost 20% of Ocado shareholders voted against the firm’s remuneration policy, which includes a potential bonus of up to £14.8m for CEO Tim Steiner. The bonus plan allows Steiner to earn as much as 1,800% of his base salary if the company’s share price reaches £29.69 in three years’ time. However, with Ocado shares currently trading at less than £3.60, there are concerns about the feasibility of this goal. Even if the share price target is missed, Steiner would still receive an award worth £5m if other performance and total shareholder return targets are met. Prior to the AGM, there were concerns among shareholders and advisory groups about the hefty potential bonus.
Factuality Level: 2
Factuality Justification: The article contains relevant information about Ocado’s remuneration policy and the potential bonus for its boss. However, it includes unnecessary details about Sainsbury’s profit expectations, which are tangential to the main topic. The article also lacks depth in analyzing the reasons behind the shareholder concerns and the potential impact of the bonus on the company’s performance.
Noise Level: 2
Noise Justification: The article provides relevant information about Ocado’s remuneration policy and the potential bonus for its boss, Tim Steiner. It includes details about the percentage of shareholders who voted against the policy, the conditions for the bonus, and the concerns raised by shareholder advisory groups. The article stays on topic and supports its claims with specific examples and figures. However, it includes some unrelated information about Sainsbury’s profit expectations at the end, which slightly increases the noise level.
Financial Relevance: Yes
Financial Markets Impacted: Ocado shareholders
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the remuneration policy and potential bonus of Ocado’s CEO, which is relevant to financial topics. However, there is no mention of any extreme event.
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