Employee owned companies continue to outperform the FTSE All-Share as third quarter of 2009 sees employee owned company
29 October 2009
Employee owned companies outperformed the FTSE All-Share Index
in the third 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 27.6%, performing
better than FTSE All Share companies’ share prices which were up
21.3% 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.
Employee owned companies have consistently outperformed the FTSE
All-Share over the course of 2009, a trend that is also seen 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 September 2009 have been worth £663 whilst the same
investment in the FTSE All-Share Index would be worth
£212. |
Graeme Nuttall, head of the Equity Incentives team
at Field Fisher Waterhouse says:
“Throughout 2009 we have seen employee owned
companies outperform the FTSE All Share. This reflects the long
term view – in 17 years of monitoring their share price performance
we have seen that despite short term fluctuations employee owned
companies are more successful.”
The Equity Incentives team at Field Fisher Waterhouse produces
quarterly reports on EOI performance which are regularly referenced
by the media, most recently Radio Four’s Today programme and
Scotland on Sunday. The team advises on employee ownership
solutions for a variety of business structures as well as incentive
plans for UK and overseas listed and private companies and has had
detailed and broad ranging input into Government share plans
policy.
For further press information please
contact:
Louise Eckersley, PR Manager,
on +44 (0)20 7861 4120.