Employee owned companies’ shares outperform FTSE All-Share companies
16 October 2012
According to the Employee Ownership Index (EOI) published by our
Equity Incentives team, companies in the UK EOI continue to
outperform FTSE All-Share companies over the long term.
Although employee owned companies underperformed in the second
quarter of 2012, dropping 9.1% whilst the FTSE All-Share was down
3.7%, EOI companies in the UK have continued to outperform FTSE
All-Share companies by an average of 10% each year since the EOI
began.
Graeme Nuttall, head of the Equity Incentives team at law firm
Field Fisher Waterhouse, and the Government's independent adviser
on employee ownership, says:
"The Employee Ownership index continues to demonstrate that in
the long term employee owned companies perform better and continue
to be a successful business model. The Government supports
employee ownership and is committed to acting on recommendations
put forward in the
Nuttall Review which provides a
framework to move this model into the mainstream of the
economy."
Jo Swinson, Minister for Employee Ownership says:
"The Government has welcomed the excellent report by Graeme
Nuttall and we will publish a full Government response to Graeme's
recommendations this Autumn. We have already published a call
for evidence on the right to request employee ownership. There
are many great examples of employee ownership in Britain and we
wish to promote this business model more widely."
The EOI 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. Click
here to view and for further information on the
EOI.
