Originally Posted by
Uninteresting
pretty disgusting, imo. Buy back stock when you don’t know what else to do with all that cash as it would be too obvious to pay execs more. Hewlett Packard, for example, bought back $47B in stock in 10 years. Current market cap? $19B. Here’s the unvarnished history of why and how
https://www.forbes.com/sites/aalsin/...tock-buybacks/
Generally I agree that it’s a backdoor way to pay execs more and that sucks for those of us in the labor food chain. However it also sucks that if a publicly traded company carries to much cash, then institutional investors come after it; so something has to be done with it.
Ideally, a company has a good handle of their cash flow and plans CAPEX appropriately to minimize debt, but that’s challenge of corporate accounting and the C-suites’ responsibility.