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Employee ownership companies top performers in FTSE

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Employee Ownership Index outperforms FTSE All-Share in first quarter of 2013. Companies with significant employee ownership outperformed the FTSE All-Share in the first quarter of 2013.

The share prices of companies’ in the EOI were up 13.7 percent, outperforming the FTSE All Share companies’ share prices which were up 9.3 percent.

The EOI is published by the Equity Incentives team at Field Fisher Waterhouse LLP. It monitors the share price performance of listed companies, comparing the performance of FTSE All-Share companies with companies that are over 10 percent owned by employees. Graeme Nuttall, head of the Equity Incentives team at Field Fisher Waterhouse, and author of “Sharing Success: The Nuttall Review of Employee Ownership” in his capacity as the Government's Independent Adviser on Employee Ownership, says:

“The Employee Ownership Index has got off to a great start in the first quarter of 2013. As the quarter came to a close, the Deputy Prime Minister Nick Clegg gave the inaugural Robert Oakeshott Memorial Lecture. He explained how the UK economy needs to be rewired to assess and share risk properly, to motivate and reward workers properly and, in particular, to think for the long term. Nick Clegg asked those who have not yet considered employee ownership 'to open yourselves to the possibility – look, seriously at what greater employee engagement can do for you.' He asked professional bodies, lawyers and accountants, to 'understand this model so that you can advise your clients on the benefits.' The Employee Ownership Index is a useful way for those wishing to demonstrate the benefits of employee ownership to do so, especially the long term benefits.”

The EOI tracks the performance of UK-quoted companies that are over 10 percent owned by employees (excluding main board directors) or employee trusts. The EOI is regularly referred to in national, regional and sector media including The Independent, The Guardian, The Daily Mail, The Mail on Sunday, The Scotsman, Scotland on Sunday, The Yorkshire Post, Employee Benefits, and and has been cited in the Today Programme (BBC Radio 4) and Newsnight (BBC 2). The degree of employee share ownership is determined using the best available information. The UK Employee Ownership Index does not necessarily include all eligible listed companies. The UK Employee Ownership Index is compiled quarterly by the Equity Incentives team at Field Fisher Waterhouse. The team provides employee ownership advice and solutions for a variety of business structures, including public sector mutualisations. It also advises on incentive plans for UK and overseas listed and private companies and has had detailed and broad ranging input into Government share plans policy.

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