Originally Posted by
Hank Kingsley
Not so fast. Stock buyback schemes are controversial.
Few things aren't.
There are some good reasons to buy back a stock. To get rid of unfriendly investors (Icahn, et al), or because you believe the stock is undervalued are two of them.
According to my reps at the time, Delta made stock buy backs part of the effort to make the stock investment grade. Corporations deemed investment grade have access to cheaper interest rates for debt, typically better bond ratings, and the ability to issue shares for equity without causing alarm.
Originally Posted by
Hank Kingsley
Frontline employees see exactly where money could be spent. And I don't mean in our pockets. I could start a list, but it's the same as yours.
I agree. We can see the thin spots. It'd be great if my personal priorities ruled.
Instead of specious analogies, I'd like to see the discussion focused on the potential financial benefits of their priorities, and the cost of them.
I'll start: I'm glad my investment in life insurance has been waste of my income so far. If our corporation spends profits on "money insurance" we can call it a waste of money...unless we need it.
Where that ranks on the "to do" list is good fodder for debate. 2-hours into my being on hold with Crew Tracking last April would not have been a good time for me to rank them.
As for the title of this thread...I have the same question.