Ocado has been dealt a bloody nose by dissenting shareholders over controversial plans which could hand up to £20 million a year to its top bosses.
The retailer confirmed that almost 185 million shareholder votes, or 29.27%, were cast against its executive pay proposals.
The firm still passed the 50% threshold for the plans to be approved, with 70.7% of votes in favour.
Advisory groups and major shareholders had been critical of the online grocer’s Value Creation Plan (VCP) before the Wednesday morning meeting.
The payment scheme, which received a substantial negative vote at the previous general meeting, uses Ocado’s share price to determine whether significant bonuses should be handed out.
The company’s recent fall in share value meant that chief executive Tim Steiner missed out on a major bonus in March but the company will now extend the scheme.
It means Mr Steiner could theoretically receive up to £20 million a year, or a maximum of £100 million across five years.
Investor Royal London Asset Management said: “This is another example of how poorly designed incentive plans can lead to excessive awards for management.”
After the vote was approved, Ocado said it will keep the VCP and other areas of executive pay under review.
“The board understands the concerns of some shareholders around the non-standard nature of the VCP,” the company said.
“However, it continues to believe that the changes proposed and approved offer the best way to drive exceptional and sustainable growth, whilst also rewarding short-term operational and strategic decisions.
“The remuneration committee will keep the operation of the VCP and all other aspects of executive remuneration under review and will continue to engage with shareholders to understand their perspectives and concerns.”