Employee-owned organisations outperformed FTSE All-Share organisations in 2010, according to the UK Employee Ownership Index (EOI) published by law firm Field Fisher Waterhouse.
The share prices of employee-owned firms were up 16%, while the share prices of the FTSE All-Share firms were up only 11%.
The EOI monitors the share price performance of listed firms, comparing the performance of FTSE All-Share organisations with those owned by over 10% of their own employees.
Over 18 years, employee-owned firms have outperformed FTSE All-Share firms each year by on average 11%.Over successive three-year periods, they have outperformed by 38% and over successive five-year periods by 74%.
Graeme Nuttall, head of the equity incentives team at Field Fisher Waterhouse, said: “By monitoring the share price performance of employee-owned organisations we have seen that over the year, those shares have outperformed the FTSE All-Share Index.
“This is also reflected when analysing performance over the last three, five and ten years. This sends a strong message about the long-term success story of employee ownership as a business model and lends support to the Coalition government’s plans to make employee-led mutuals and employee ownership a crucial part of public services reform.”
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