Outperforming the FTSE All Share again - employee owned company shares up 19.9%
18 August 2009
Employee owned companies outperformed the FTSE All-Share Index
in the second quarter of 2009 according to the UK Employee
Ownership Index (EOI) published by law firm, Field Fisher
Waterhouse LLP.
Employee owned companies’ share prices were up 19.9%, performing
significantly better than FTSE All Share companies’ share prices
which were up 9.5 % over the quarter.
The EOI, compiled by the firm’s Equity Incentives team, monitors
the share price performance of listed companies, comparing the
performance of FTSE All-Share companies with companies that are
over 10% owned by employees.
The first half of 2009 has once more seen employee owned
companies outperform the FTSE All-Share, a trend that is seen
consistently over the long term.
Over the last 17 years, employee owned companies have
outperformed FTSE All-Share companies each year by an average of
10%. Over successive three year periods they have
outperformed by 41% and over successive five year periods by
78%.
| An investment of £100 in the EOI in 1992 would at the end
of June 2009 have been worth £521 whilst the same investment in the
FTSE All-Share Index would be worth £177. |
Graeme Nuttall, head of the Equity Incentives team at Field Fisher Waterhouse
says:
“17 years of monitoring their share price performance shows that
employee owned companies are more successful in the long term.”
The Equity Incentives team at Field Fisher Waterhouse produces
quarterly reports on EOI performance and advises on employee
ownership solutions for a variety of business structures as well as
in incentive plans for UK and overseas listed and private
companies. They have had detailed and broad ranging input into
Government share plans policy.
For further press information please
contact:
Louise Eckersley, PR
Manager, Field Fisher Waterhouse LLP on +44 (0)20 7861 4120.