Ocado Group lines up ex-Microsoft exec as next chairman
A former Microsoft executive is being lined up as the next chairman of Ocado Group, the online grocery technology provider.
Sky News has learnt that Adam Warby, who chairs the board of executive search firm Heidrick & Struggles and serves as a senior advisor to KKR, the US-based investment powerhouse, has emerged as the leading candidate to succeed Rick Haythornthwaite in the role.
City sources said on Monday that an announcement confirming Mr Warby’s appointment could come as early as next month.
Mr Warby, who also chairs Swiss-based SoftwareONE, an enterprise software provider, held a string of roles at IBM and Microsoft earlier in his career.
More recently, he spent a decade as chief executive of Avanade, a provider of digital and cloud services which was a joint venture between Accenture and Microsoft.
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He continues to be CEO Emeritus of Avanade.
If confirmed in the role, he would take the helm at Ocado Group at a critical time for the London-listed company.
After soaring in valuation during the pandemic, it has seen its shares endure a challenging period, and now has a market capitalisation of just over £3bn.
The stock has fallen by a quarter over the last year.
Ocado counts a number of major international grocery retailers among the clients for which it delivers e-commerce, fulfilment and logistics services.
Still run by one of the company’s co-founders, Tim Steiner, Ocado Group also owns a 50% share in Ocado Retail alongside joint venture partner Marks & Spencer.
The joint venture has experienced a slew of problems, leaving the companies in dispute about a final payment that M&S was scheduled to make to Ocado.
Mr Steiner said in July that he had no desire to sell the company’s shareholding in Ocado Retail.
Under the terms of the deal they struck in 2019, both sides had the option to sell their stakes after its fifth anniversary.
“While there remains more to do, we look forward to making continued progress over the rest of the financial year and beyond, as we build a profitable, cash-generating, technology business,” Mr Steiner said in July.
The appointment of a successor to Mr Haythornthwaite was triggered by his appointment as chairman of NatWest Group.
He also chairs the AA, which is owned by private equity firms Stonepeak, Towerbrook and Warburg Pincus.
A spokesperson for Ocado Group declined to comment.
Donald Trump’s victory was secured on an unequivocal promise to stretched American households that he would “end inflation”, but markets and economists are anticipating his second term will do the opposite.
A combination of corporate tax cuts, government borrowing, lower migration and swingeing tariffs on overseas imports are all expected to heat up the American economy and stoke price rises.
Bond yields on 10-year US Treasuries, effectively the price of borrowing for the American government, were up by 3.6% overnight, rising more than 15 basis points to above 4.4% as European markets opened.
That signals investors believe that borrowing will rise, and the Federal Reserve will be forced to slow rate cuts in order to tackle inflation.
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A clearer picture will emerge on Thursday when Federal Reserve chairman Jay Powell, who Mr Trump said will not be reappointed, announces the next move on rates.
Markets still expected a 0.25 percentage point cut (a similar move to that anticipated from the Bank of England earlier in the day) but Mr Powell’s comments will be scrutinised for signals of what Trump 2.0 means for the prospect of further cuts.
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Trump wins: Demographics and key issues
But higher prices for consumers are not necessarily bad news for corporate America, with the dollar surging against sterling and the euro as swing states fell to Mr Trump, and Wall Street futures trading indicating a rally when they reopen with him confirmed as president-elect.
Shares in US banks were boosted with J.P. Morgan, Goldman Sachs and Morgan Stanley all up more than 6% in pre-market trading, along with Tesla, boosted by more than 13% as markets anticipate a dividend for Elon Musk’s campaign-trail support.
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Defence stocks were higher too and not just in the US – BAE Systems and Rolls Royce were both up – reflecting likely pressure on America’s NATO allies to make good on their commitments to increase spending.
Bitcoin was also positive in anticipation of a more benign regulatory environment from a president who used the campaign platform to launch his own cryptocurrency.
By contrast renewable holdings, the target of much of Joe Biden’s economic stimulus, were in negative territory, with wind and solar priorities likely to be replaced by a pledge to “drill baby, drill”.
Of most concern to America’s trading partners and allies will be Mr Trump’s promise to erect barriers to free trade.
The man who said tariffs “is the most beautiful word in the world” has pledged a 60% levy on Chinese imports and 10% on those from elsewhere, a deeply protectionist move that could trigger a trade war with China and the EU.
These can only increase prices in the US, with importers paying the levies at the point of entry, and other trading blocs likely to respond in kind.
Read more on Trump’s victory:
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Dollar surges amid Trump victory
The EU has already imposed its own 35% tariff on Chinese EVs to the dismay of the continent’s carmakers the measure is intended to protect.
While these tensions play out, post-Brexit Britain, a relatively small player outside the major trading blocs, is likely to be a spectator.
Post Office campaigner Sir Alan Bates is yet to receive a reply from Sir Keir Starmer, despite writing to him over a month ago.
Sir Alan said he had written to the prime minister to remind him the “clock is still ticking” on a financial redress deadline for victims.
In his letter, he demanded a March 2025 deadline for compensation for sub-postmaster victims of the Horizon scandal.
Sir Alan confirmed to Sky News he was yet to hear back from the prime minister.
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“It was over a month ago,” he said.
“I sent him a reminder yesterday. I told him the clock is still ticking and it’s now five months from the March deadline, which I’m told is still achievable by other professionals.
“So let’s get on with it, that’s all we want. Get on with it.”
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