EMPLOYEE OWNERSHIP STOCK INDEXES
INDICES BOURSIERS DE L'ACTIONNARIAT SALARIE

United Kingdom - UK Employee Ownership Index EOI
France - Indice de l'Actionnariat Salarié IAS


  UNITED KINGDOM

UK EOI - UK Employee Ownership Index

The UK Employee Ownership Index has recently been re-launched and from June 2013, it is calculated by FTSE International.

The UK Employee Ownership Index is an index of UK public companies quoted on the London Stock Exchange and AIM which have 10% or more of their issued share capital held by or for the benefit of employees other than main board directors. There is a separate version of the index for companies that are 3% or more employee-owned.

Here is the table of companies. The 10% EOI includes 19 companies and the 3% EOI includes 67 companies (November 2013). By comparison, the EFES database of employee ownership in European companies identifies 67 listed companies in the UK which have 10% or more of their issued share capital held by employees and 138 which are 3% or more employee-owned.

The index was created to test a hypothesis that businesses with substantial employee ownership perform well over the long term, due to their highly engaged staff, high governance standards and long term outlook. The hypothesis has been positively affirmed in the academic literature, so the index was created as a practical step to explore whether this theory translated into superior long term shareholder returns.

It shows that companies in the Index regularly outperform the comparable FTSE 100 and All-Share averages in previous periods. Quite strangely, the 3% EOI outperforms the comparable FTSE All-Share more than the 10% EOI, as can be seen hereafter (Graph 1). This looks contradictory with the former picture of how the 10% EOI outperformed (Graph 2).

                                                                                                            Graph 1

                                                                                                                  Graph 2

 FRANCE

IAS - Indice de l'Actionnariat Salarié

This could be an interesting tool. However, most French companies meet now the criteria. As a following, the IAS finally replicates the common basis Index. Killed by its own success.

 



 

 


 

 

For information and contact
EFES - EUROPEAN FEDERATION OF EMPLOYEE SHARE OWNERSHIP
FEAS - FEDERATION EUROPEENNE DE L'ACTIONNARIAT SALARIE
Avenue Voltaire 135, B-1030 Brussels
Tel/fax: +32 (0)2 242 64 30
E-mail: efes@efesonline.org
Web site: www.efesonline.org
EFES' objective is to act as the umbrella organization of employee owners, companies and all persons, trade unions, experts, researchers, institutions looking to promote employee share ownership and participation in Europe.