Ocado chief says he won’t be a ‘puppet master’ amid apparent succession row
Ocado's co-founder and chief executive, Tim Steiner, has denied any intention of acting as a "puppet master" behind the scenes, following an apparent boardroom dispute over succession plans at the online grocery technology firm. His comments came as shares in the company fell nearly 15% to their lowest level in more than a decade, after Ocado reported a sharp fall in pre-tax profits, adding pressure to a leadership transition already clouded by reports that the chair had begun seeking a new chief executive without consulting Steiner.
Ocado said last week that Steiner would step down as chief executive in 2028 but remain for a further year in a "founder role" offering strategic guidance until 2029, and he indicated on Thursday he would stay longer if his successors wished. Pre-tax profits for the six months to 31 May came in at £17m, down from £607m a year earlier, though Steiner insisted the business remained "on a good path", citing expected positive cashflow by November, new US client signings, forthcoming robotic distribution centres in South Korea, Japan and Arizona, and 15% growth to £1.76bn in sales at its Marks & Spencer joint venture. He declined to comment on his relationship with chair Adam Warby, who took up the role in 2024.
In short
- Ocado shares fall 15% amid succession row and profit slump
- CEO Tim Steiner denies wanting to control the company from behind
- Pre-tax profits dropped to £17m from £607m year-on-year
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A board's primary duty is to shareholders, not individual executives, however senior. When profits collapse from £607m to £17m, proactive succession planning becomes essential. Founder-led companies risk dangerous drift during leadership transitions, and boards shouldn't require the incumbent's approval for succession strategy. The chair's approach—planning renewal whilst keeping a founder advisory role through 2029—balances respect for Steiner's contribution with the obligation to restore shareholder value.
The case against
Founder-led transitions demand particular sensitivity given deep institutional knowledge at stake. Steiner built Ocado into a technology powerhouse, and proceeding without consultation risks alienating someone whose continued guidance could prove crucial during recovery. The profit decline may reflect market conditions, not leadership failure, as the firm shows positive developments including M&S joint venture growth and new US clients. Excluding Steiner from planning undermines authority when stability matters most, risking the instability that damages companies.
Explained simply
Ocado is a company that delivers groceries online and provides warehouse technology to other supermarkets, making it a significant player in Britain's food retail sector. Tim Steiner is both its founder and current chief executive.
Steiner recently announced that he will step down as chief executive in 2028, but remain with the company for another year in an advisory role. However, tensions have emerged within the company's leadership about this transition, after reports that the chair, Adam Warby, began seeking a replacement without consulting Steiner.
The leadership uncertainty is occurring at a difficult time for Ocado. It has reported significantly lower profits in its latest results and its share price has fallen sharply. How the company manages the succession of its founder will be closely watched by investors.
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