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It is one year on from the Government's response to Fieldfisher partner Graeme Nuttall's review of employee ownership, the Nuttall Review.
The Department for Business, Innovation and Skills has today published the One Year On Report, featuring a health check on employee ownership from Graeme Nuttall and a report on the success of the measures taken to implement the Nuttall Review recommendations.
Key successes have included company law changes, the UK's first profile-boosting Employee Ownership Day, new tax reliefs for employee owned businesses, and the publication of Government and industry-led guidance on how to become employee owned.
The UK Employee Ownership Index has been re-launched and is now calculated by FTSE International according to FTSE methodologies. The Index provides information on UK companies listed on the London Stock Exchange which have more 10% or more (or in a different version 3% or more) of their shares held by or for the benefit of employees other than main board directors. The Index was created by Capital Strategies Limited and has been published by Fieldfisher since 2002. It shows that companies in the Index regularly outperform the comparable FTSE 100 and All-Share averages in previous periods.
Graeme Nuttall said: "One year on from the Government's response to the Nuttall Review, it is right to say that much has been achieved. I thank all those who have helped make the Nuttall Review recommendations move from the page to reality. However the bar has now been raised and there is more to do if we are all to succeed in making this the decade of employee ownership. The One Year On Report contains a health-check on employee ownership. I welcome Business Minister Jo Swinson's confirmation that over the next year BIS will hold regular stakeholder meetings in order to assess where we stand against this health-check ."
Business Minister Jo Swinson added: "Evidence shows that businesses that adopt the employee ownership model can be more profitable, create more jobs and are more resilient to economic shocks.
"The Nuttall Review set us an ambitious challenge a year ago but I am delighted to say the government and the sector have risen to meet it. We have made substantial progress in laying the foundations for a thriving and growing employee ownership sector in the UK, but there is more to do to raise awareness.
"The Employee Ownership Index will now mean investors can identify thriving employee ownership businesses and be part of their success. I hope more businesses recognise the value of this model and give their employees a greater stake in their future and the success of their company."
To read the One Year On Report click here.
Click here to see data from the re-launched UK Employee Ownership Index.