CEO Pay Boosted by Stock Buybacks
July 7, 2015 7:00am by Barry Ritholtz
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Its one thing to goose EPS with buybacks paid out of cash flow. It is another thing entirely to pay for them through bond issuance. I suspect that some of the companies will regret this at some point, assuming they believe the bonds actually need to be repaid.
http://www.bloomberg.com/politics/articles/2015-06-19/record-cash-wrung-from-bond-market-to-cover-u-s-stock-buybacks
The CEO will be long gone by then, raiding some other company.
you mean running another company
into the ground?
Great illustration!!! The feedback loop shines a light on this corrupt practice. Everything about the stock buy back loop is corrupt to the core.
That feedback loop would work much better if labor had some say. I think would should follow Germany’s lead and mandate labor get a seat on the board.