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


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


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.


Employee Ownership Index

On June 19, 2017, the NCEO created the Employee Ownership Index, an index of 28 publicly traded companies that had both broad-based employee ownership and had won one of three major national employer rating awards, each of which puts a high emphasis on employee engagement (Fortune's Best Companies to Work for, the Gallup Engagement Index, and the Enterprise Engagement Alliance awards). Broad-based employee ownership included ESOPs where there was an average account balance of $30,000 or more and companies that provided equity grants to most or all full-time employees.

For the first year, the Employee Ownership Index has a 30.3% return; the S&P 500 had a 15.5% return. Research has overwhelmingly shown that companies that have broad-based ownership and high employee involvement in work-level decisions outperform other companies. This is the first time, however, that an index has been created that people can invest in.

The fund is available at Motif, an online trading platform that allows users to create their own "motif," or basket of stocks, to invest in. Investors can make a motif an option for other users to buy. When you buy a "motif," you are not buying a fund but rather are investing in all the stocks and/or ETFs that make up that motif. If you want to invest in the Employee Ownership Index, you need to go to the Motif website and open an account. Once you have done that, you can trade the Employee Ownership Index.







For information and contact
Avenue Voltaire 135, B-1030 Brussels
Tel: +32 (0)2 242 64 30   Fax: +32 (0)2 791 96 00
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.