The EO Index: Leveraging Market Forces
The Employee Ownership (EO) Index is a strategic measurement tool that enables American companies to take the lead in shaping a market-driven standard for broad-based ownership of equity by their employees.
The Index empowers company managers with data-driven insight to determine the right balance of employee-owned equity across the pay scale.
Initial Focus on Public Companies
With an initial focus on publicly traded companies, Work to Own is collaborating with the market to incrementally shape core components of the Index.
In the first iteration of this process, we have designed two baseline measures:
Distribution of equity between executive and non-executive employees (in effect a company Gini co-efficient).
Percentage of total equity allocated to employees.
We are collaborating with market participants to refine these component measures and co-create additional components based on more granular data.
Empowering Companies to Balance Variables
Work to Own recognizes the dynamic nature of balancing competing business variables, including sector-specific considerations, to maximize shareholder value.
Within this context, the EO Index equips managers with the insight to achieve an optimal alignment of economic interests between company managers, employees and non-employee shareholders.
Leveraging Market Forces to Shape a Win-Win
The EO Index creates a market solution where government policy has failed, enabling managers to create shareholder value while positioning their companies as change agents in the creation of generational wealth for their employees.
Currently, there is no financial market standard to benchmark broad-based employee ownership at the company level.