EMPLOYEE OWNERSHIP STOCK INDEXES
BOURSIERS DE L'ACTIONNARIAT SALARIE
Kingdom - UK Employee Ownership Index EOI
France - Indice de l'Actionnariat
EOI - UK Employee Ownership Index
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.
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
- Indice de l'Actionnariat Salarié
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.