Commenting ahead of Ocado’s AGM on Wednesday, Sophie Johnson, Corporate Governance Manager at Royal London Asset Management (RLAM) said:
“Once again, we have voted against Ocado’s pay policy as we have serious concerns over the decision to extend the company's value creation plan that will see executives receive up to £20m a year in awards.
“This is another example of how poorly designed incentive plans can lead to excessive awards for management.
“We have consistently voted against or abstained on executive pay for a number of years at Ocado, including voting against the value creation plan.
“We would have preferred a more balanced long-term incentive plan with a range of measures looking at different aspects of performance and the overall health of the business.”
RLAM holds a 0.3% stake in Ocado worth around £21m.
The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.