Data & ResearchAugust 17, 2009

Survey Finds ESOP Companies Outperformed Stock Market

<p>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.</p>

Reported by Rebecca Moore

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.