Originally Posted by
BenderRodriguez
I'm not saying they are a good expenditure. Never said that. All I am saying is that the perception that it enriches the executives is minimal at best because with the amount of stock we have outstanding, it won't move the needle enough to "enrich" anybody. They already invest 1/4 of the profits in the employees, pretty hard to justify doing a bigger percentage than that from a business perspective. Do you disagree with that?
First of all t, a 6 billion dollar buyback is nearly one-fifth of our entire market cap. That's a VERY big number for a buyback.
Second, it only enriches shareholders if it works and the stock goes up. If not, it's a waste of shareholder money. So who does it enrich? Option holders with lock up periods. Who most often has those? Senior executives. Those options represent great wealth if the share price can be maintained above a certain level. Thus the buyback program.
Again, dividends are the method to enrich shareholders if that's the desire.
Carl