Employee Owned companies in UK outperform FTSE
Employee owned companies outperformed the FTSE All-Share in the first six months of this year, according to the UK Employee Ownership Index (EOI) published by law firm Field Fisher Waterhouse.
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 ‘employee-owned companies’ i.e. companies that are more than ten percent 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 percent. Over successive three-year periods they have outperformed by 38 percent and over successive five year periods by 74 percent. 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 equity incentives at Field Fisher Waterhouse said: “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.”
Employee Owned companies in UK outperform FTSE was last modified: January 7th, 2014 by Craig West
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