Four of Ocado’s directors were denied pay rises and annual bonuses in the UK online retailer’s last financial year after the company reported a full-year loss.
In the firm’s annual report published yesterday (22 March), Ocado said there were no bonus payments made to the company’s executive directors under its 2011 annual incentive plan.
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CEO Tim Steiner, commercial director Jason Gissing, chief legal officer Neill Abrams, and departing finance director Andrew Bracey were not paid bonuses and also saw their salaries fall.
Ocado said the decision not to award to pay increases and bonuses up to GBP1m (US$1.6m) was a result of the group not achieving “positive earnings before tax for the period irrespective of the achievement of other performance targets”.
As a result, Steiner took home GBP354,000, Gissing GBP253,000, Abrams GBP203,000 and Bracey, who is set to leave tomorrow, GBP253,000. All were lower than the previous year’s earnings of GBP574,000, GBP403,000 GBP322,000 and GBP403,000 respectively.
Bracey will also lose around 3.3m shares, worth around GBP4m at the current share price of 118 pence, as a result of his departure to join global headhunter Michael Page.
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By GlobalDataThe shares remain below the 180 pence level achieved when the company floated in July 2010, although the stock has risen in recent months
In January, Ocado reported full-year losses of GBP2.4m, although they had narrowed compared to a year earlier.
Steiner insisted the retailer would continue to pursue its existing strategy in 2012 to “improve what we offer our customers and increase our capacity to meet growing demand”.
Earlier this month, Ocado reported a 10.9% increase in gross sales for the first quarter of its new financial year.
