First half of 2010 sees employee owned companies’ shares outperform FTSE All-Share
08 September 2010
Employee owned companies outperformed the FTSE All-Share in the
first six months of 2010, according to the UK Employee Ownership
Index (EOI) published by law firm Field Fisher Waterhouse LLP.
Employee owned companies’ share prices were down 4.5%,
performing better than the FTSE All Share companies’ share prices
which went down by 7.9% over the same six month period.
Analysis of quarter two showed employee owned companies’ share
prices were down 7.5%, still performing better than the FTSE All
Share companies’ share prices which were down 12.6% 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 EOI started in 1992 and shows that over 18 years, employee
owned companies have outperformed FTSE All-Share companies each
year by on average 11%. Over successive three year periods
they have outperformed by 38% and over successive five year periods
by 74%.
An investment of £100 in the EOI in 1992 would at the end of
June 2010 have been worth £647 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:
“The first half of 2010 has seen employee owned companies
performing better than the FTSE All-Share. The EOI demonstrates
that this trend is also seen over the long term - employee
owned companies generally do better over time than FTSE All-Share
companies.”
The Equity Incentives team at Field Fisher Waterhouse produces
quarterly reports on EOI performance which have been referred to on
Radio Four’s Today programme, BBC Two’s Newsnight and in 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,
Field Fisher Waterhouse LLP on +44 (0)20 7861 4120.