Survey Finds ESOP Companies Outperformed Stock Market
Results from the Employee Ownership Foundation’s 18th Annual ESOP Economic Performance Survey found that 88.5% of ESOP companies outperformed the stock market in 2008.
According to a press
release, the results indicate respondents’ companies outperformed the
Dow Jones Industrial Average, the NASDAQ Composite, and the S&P 500.
In
addition, 50.9% of respondents indicated a better performance in 2008
than in 2007; 39.7% indicated a worse performance; and 9.4% indicated a
nearly identical performance as the previous year. Nearly 58% indicated
revenue increased, and more than half (50.4%) indicated profitability
increased.
A majority (88.2%) of survey respondents reported
that creating employee ownership through an ESOP (employee stock
ownership plan) was a “good business decision that has helped the
company.” In addition, 65% indicated the ESOP positively affected the
overall productivity of the employees.
The 2009 Economic
Performance Survey was distributed to The ESOP Association’s more than
1,400 members in May, and the results are based on 429 responses.