the_Bird

My Reconsideration: Why Share Buybacks Are Pointless

Joe, that's the theory - but how does that play out IRL? Share buybacks aren't inherently bad, but they are too often used as a means to hide what management is really doing; granting themselves outsized, equity-heavy compensation packages. Do a big buyback ("Hey, it's great for the shareholders!") and gloss over the huge amounts granted to senior management ("It aligns our interests! It gives us incentive!").

I'm a fan of cleanliness. Give me cash in my pocket. Give senior execs a fair amount of compensation, but make that transparent. Don't use buybacks to cloud the effect of exactly how much is being spent.

So, yeah, neither good nor bad, inherently - but subject to abuse.