The boss of Ocado has had a potential bonus deal worth almost £15 million given the go-ahead despite fierce criticism over the move.
The online retail firm gained the majority support needed to approve chief executive Tim Steiner’s bonus package plan, but saw almost a fifth of shareholders rebel against the deal.
At the firm’s annual general meeting, it said 19.43% of shareholder votes were made against the pay deal.
However, it was voted in favour by the remaining 80.57% and clearly surpassed the 50% needed.
It means Mr Steiner, who co-founded the company, will be eligible for the package, which will largely be dependent on the firm’s trading performance over the coming years.
The boss is set to receive a £824,570 base salary but could also secure an “enhanced multiplier” bonus worth up to 1,800% of this if certain requirements are met.
In order to receive the £14.84 million maximum, Ocado’s share price would need to reach 2,969 pence in three years’ time and meet other performance targets.
The group’s shares currently sit at 355p, valuing the business at just less than £3 million.
Ocado said it was mindful of Mr Steiner’s position in founding the company and his “longer-term focus and strategic vision” in putting forward the bonus deal.
However, the boss could still receive almost £5 million if it fails to meet the share price goals but meets other targets for shareholder returns and other performance measures.
Shareholder advisory group Glass Lewis urged investors to vote against the remuneration plan ahead of the vote, criticising Ocado’s “egregious remuneration practices”.
The potential pay deal also drew criticism from campaign group ShareAction.
Dan Howard, head of good work at ShareAction, said the retailer “has a responsibility to ensure its lowest-paid workers are at least able to cover the cost of everyday goods and services” instead of agreeing to the pay deal.