Employee-owned companies outperform all-share companies

2010-03-02

Employee-owned companies outperformed those from the FTSE all-share index in 2009. The employee-owned firms boasted a 54.4% share price rise compared to 25% increase among the FTSE cohort, according to the UK Employee Ownership Index (EOI) report, published by law firm Field Fisher Waterhouse.

Analysis of the last decade shows that employee-owned company shares went up 0.9% while all-share companies' shares were down 9.9%.

Graeme Nuttall, head of the Equity Incentives team at Field Fisher Waterhouse, said: “By monitoring the share price performance of employee-owned companies we have seen that, over the last decade, as a group, those shares have outperformed the FTSE All-Share Index.

“This sends a strong message about the long term success story of employee ownership as a business model.”