6th May 2020 18:19
(Alliance News) - Ocado Group PLC on Wednesday said a significant number of shareholders voted against the company's remuneration report, although all resolutions proposed at the annual general meeting were passed.
According to the results of the company's annual meeting, 30% investors voted against the remuneration report, whereas 70% approved the resolution.
In response, the online grocer said it continues to believe that the salary rises to the executive directors were "fair" and reflected the changes in the complexity of their roles given the scale of the solutions business and its international nature.
Ocado also said that it "does not believe that there is a basis on which to seek to change the outcome".
Other notable resolution facing shareholder opposition was the re-appointment of Andrew Harrison as a director, with 20% votes against the proposal. Harrison is the chair of the company's remuneration committee.
Harrison, over the shareholder opposition on the remuneration report, said: "I intend to continue regular correspondence with all shareholders, and will continue to take appropriate steps to continue to ensure that executive remuneration at Ocado is aligned to the shareholder and employee experience".
Earlier on Wednesday, Ocado said retail sales so far in the second quarter have jumped by 40% due to surge in grocery demand surges as a result of the Covid-19 pandemic. Retail revenue in its first quarter ended early March was 10% higher year-on-year.
The company said demand ratcheted up "almost overnight" due to Covid-19. It noted it has "ramped up" capacity at its fulfilment centres as a result of the increased demand.
Shares in Ocado closed up 5.6% at 1,772.50 pence each in London on Wednesday, the best FTSE 100 performer.
By Tapan Panchal; [email protected]
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