Ocado Group PLC (LSE:OCDO) is facing shareholder pushback at its annual meeting over the bonus of its chief executive, Tim Steiner.
Steiner is hoping to have a potential bonus of up to £14.8 million approved by shareholders, but advisors Glass Lewis have urged investors against the decision.
Glass Lewis said: “We remain concerned about the potential for excessive remuneration… [and we] question the need for this enhanced incentivisation tool”.
Share Action’s Dan Howard expressed his desire to speak with Ocado’s management and board and find out why it was happy to provide huge pay packets for its executives when “refusing to pay hundreds of its workers a real living wage of £12 an hour”.
Howard said he also wants to see the retail tech group become accredited to the Living Wage Foundation Scheme, which helps businesses calculate realistic remuneration for workers to cope with the cost of living.
“Ocado has been talking about addressing low pay for five years but has yet to make a long-term commitment,” Howard said.
‘Today we’re calling on the board to pay the real Living Wage – this would make a significant difference to the lives of hundreds of its lowest-paid workers.’
Ocado is planning to launch a pay scheme which would see Steiner receive a bonus worth 1,800% of his base salary of £824,570 should the group reach a share price of £29.69, and several other targets are met.
Shares are currently trading around 354p meaning Steiner could receive a bonus worth 600% of his base salary for meeting targets but failing to achieve his share price target.