We have taken a systematic, first-principles approach to developing the EO Index.

In each phase of development, we have incrementally worked through resistance to lay the foundation for tackling the subsequent phase. 

The following summarizes the key focus of each phase.

PHASE I: MEASURING THE RELATIONSHIP BETWEEN EO AND FIRM VALUE

We completed the structuring and analysis of EO data for the largest 1,500 U.S. public companies. Our analysis found that firms with high relative EO outperformed the S&P 500 benchmark by 25%.

PHASE II: CORRELATING BROAD–BASED EO AND FIRM VALUE

We developed AI–driven measurement system to measure broad–based EO and determined that S&P 500 firms offering ESPP and equity grants broadly to their employees generated higher abnormal returns than firms that did not.

PHASE III: SYSTEMATICALLY SCALE UP BROAD–BASED EO ADOPTION

To achieve large scale BBEO adoption, our Phase III implementation plan includes:

• A scalable commercial model

• EO Index publicity and visible ranking of firms

• Ongoing cooperation with firms to support optimization of broad–based EO

• Coordination with policymakers