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Ocado Founder Tim Steiner Survives Boardroom Coup
8 Jul
Summary
- Investors backed founder Tim Steiner after the board attempted his removal.
- Ocado shares are still below their market debut price after 16 years.
- Steiner will transition to an advisory role by late next year.
Investor support has secured founder Tim Steiner's position at Ocado, thwarting the board's attempt to remove him. This mirrors a broader trend where founders, like Nvidia's Jensen Huang and SpaceX's Elon Musk, are highly valued for their perceived visionary leadership and earnings potential, often delivering superior shareholder returns.
However, Ocado's performance has been a stark contrast. Sixteen years after its market debut, the online grocer remains below its initial share price, reporting operating losses annually since 2018. In the past four years, the company has depleted over £1.5bn in cash, according to Bernstein analysts, without a decisively successful product.
Recognizing the need for reinvention but the difficulty of replacing Steiner, Ocado has opted for a compromise. Steiner will remain CEO until late next year before shifting to an advisory "founder role." This decision reflects a nuanced view on leadership, moving away from both the "infallible founder" and the purely results-driven professional manager, suggesting a blend of both is optimal.
