FT BOARD DIRECTOR PROGRAMME NEWSLETTER

What happens when trust and cooperation between a board and its shareholders breaks down?

This month, Ocado has provided a very public example, following the proposed removal of founder and CEO Tim Steiner.

Board chair Adam Warby led the move to replace Steiner, but the decision was met with fierce opposition from several of the company's largest shareholders. Rather than backing the board, investors rallied behind Steiner, with some even calling for Warby's removal and warning that the directors themselves could face a vote of no confidence. The dispute quickly spilled into the public eye, creating uncertainty around the company's leadership and governance.

The board has since reversed course, confirming that Steiner will remain in his role until the end of 2027 while a formal succession plan is put in place. While the immediate crisis may have passed, the episode raises broader questions about the relationship between boards and shareholders, and how quickly confidence can be lost when communication and alignment break down.

A board's responsibility is ultimately to act in the long-term interests of the company, rather than any one group of shareholders. Even so, maintaining trust with investors remains a fundamental part of good governance. As Ocado looks to move beyond this difficult chapter, attention will now turn to whether the board can rebuild credibility, restore confidence and demonstrate that it is equipped to lead the business through its next phase.