March 14 (Bloomberg) -- Ocado Group Plc, a British internet-only grocer, gave Chief Executive Officer Tim Steiner a 29 percent raise for the current year because of his “significant individual performance.”
Steiner will get 450,000 pounds ($676,000) and is the only executive director to receive a base pay increase, as the company experienced trading difficulties last year, Ocado said in its annual report for 2012 published today. The company extended key credit lines, as well as sold new shares to guarantee its survival last year.
The appointment of former Marks & Spencer Plc boss Stuart Rose as chairman designate and faster sales have eased those concerns and the company’s shares surged as much as 29 percent today on confirmation it’s negotiating to help WM Morrison Supermarkets Plc start an online business.
Rose will be paid a base salary of 40,000 pounds per annum from his appointment date of March 11 to May 10, when Ocado expects his appointment to be endorsed by shareholders at the annual general meeting. After that, Rose will be paid 200,000 pounds a year.
He has also been awarded 400,000 pounds worth of shares once he takes up his role as chairman as part of a co-investment plan which requires him to invest one year’s fees on appointment.
He will pay the nominal value for the Matching Shares of £9,046 and these shares will not vest until three years after he starts as Chairman.
The bonus payment ceiling has been raised to 125 percent of base salary from 100 percent for Steiner and to 100 percent of base salary from 80 percent for executive directors. The executives will have to “significantly outperform” their sales and earnings growth this year to receive the maximum payout, according to the report.
To contact the reporter on this story: Gabi Thesing in London at email@example.com
To contact the editor responsible for this story: Celeste Perri at firstname.lastname@example.org