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FTSE 100 proves EOBs out-performance

Posted on October 01, 2010

Field Fisher Waterhouse LLP have this week published in their UK Employee Ownership Index (EOI) the results of the first half of 2010 for the FTSE 100, and it looks like employee owned companies are coming out on top.

In the first six month period the drop in share price value for companies owned more than 10% by employees was significantly less than that for FTSE All-share companies with a difference of 4.5% for EOBs and 7.9% for All-share. Whilst such percentages aren't jaw dropping, they certainly go some way in suggesting that the correlation between employee ownership and a company's performance is set to be proved again.

Field Fisher Waterhouse also highlight this performance by a comparison in investment. A 100 investment into the EOI in 1992 would in June 2010 be worth a staggering 647 compared to 212 to the same investment in the FTSE All-share. These are figures that speak for themselves when assessing the potential utility of providing equity remuneration for employees. When employees are allowed to become part of the business not only do they benefit, but the entire company can benefit as well.

If you would like further information on how employee ownership can boost morale and productivity, then please contact us on 020 8949 5522 and speak to one of our advisers.

 
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