The Employee Ownership Update
June 12, 2009
Cleveland Launches Major Worker Cooperative InitiativeCleveland has launched a major initiative to create worker-owned cooperatives in the green business sector. Funded in part by a low-interest loan of $1.5 million from the city's Department of Economic Development, the co-ops will include laundry services, solar energy, and urban agriculture businesses to start. Their clients will initially come from "anchor institutions" such as local hospitals and universities that cannot leave the area. The project was the initiative of the Cleveland Foundation. The Ohio Employee Ownership Center and Shore Bank are also involved in the effort. For a detailed article on this intriguing innovation go to this link.
Rutgers Announces Shared Capitalism Fellowship AwardsRutgers University's School of Management and Labor Relations (SMLR) announced that 11 top experts and up-and-coming scholars of employee ownership, profit sharing, and broad-based stock options have been awarded fellowships to study the role that shared capitalism plays in corporations and the economy in general.
SMLR's new annual fellowship program was established with a major gift from J. Robert Beyster and Mary Ann Beyster of La Jolla, California, with a grant from the Foundation for Enterprise Development. Details on the program and a list of the winners can be found at this link.
Index of British Public Companies with Broad-Based Ownership Outperforms the MarketCompanies in the Employee Ownership Index (EOI) published by Field Fisher Waterhouse LLP have outperformed FTSE All-Share index companies each year by, on average, 10%. Over successive three-year periods they have outperformed by 41% and over successive five-year periods by 78%.
The EOI, compiled by the firm's equity incentives team, monitors the share price performance of listed companies, comparing the performance of FTSE All-Share companies with companies that are over 10% owned by employees.