Opinion | Stock buybacks and a shaky economy – The Washington Post

There are two main channels for funneling profits to shareholders: dividends and stock repurchases. From 2000 to 2017, dividends and stock buybacks totaled about $10 trillion, finance professors Kathleen Kahle of the University of Arizona and René M. Stulz of Ohio State University report in a just-released working paper by the National Bureau of Economic…

Boeing’s crisis is largely of its own making – The Washington Post

“Wall Street got Boeing’s cash; Main Street gets the relief bill.” If you want an example of how keeping Wall Street happy can undermine your business, look at Boeing. If you’re also interested in seeing how already-well-paid corporate directors can get a raise while presiding over a horrendous mess that helped lead a company to…

AT&T Sneaks Away Voting Rights With Coercive Buyback/Exchange Offer

We’ve got a sense of deja vu here. Back in the early 80’s companies tried to get the NYSE to approve coercive exchange offers of non- or limited-voting stock with a slightly higher return for shares with voting rights. We note that there is already such a security available for anyone who wants to buy…

Buybacks: The company says buy, but insiders sell – The Washington Post

VEA Vice Chair Nell Minow is quoted in this Washington Post story about executives selling their stock into buybacks: Repurchases enrich executives several ways, says Nell Minow, vice chair of ValueEdge Advisers, which counsels investors on corporate governance issues. “It’s a triple dip,” Minow said, that works like this: Here’s how stock buybacks work and…

Boeing and the siren call of share buybacks | Financial Times

One of the oddities of the modern US stock market is its strong predilection for share buybacks. Rather than finding profitable outlets for their cash holdings by investing internally, corporations have taken to shrugging their shoulders and simply handing the stuff back en masse. The idea of shrinking the number of shares outstanding has acquired…

Why Are Stock Buybacks So Popular? – The Atlantic

VEA Vice Chair Nell Minow is quoted in this Atlantic story about buybacks. Today, another effort is under way to raid corporate assets at the expense of employees, investors, and taxpayers. But this time, the attack isn’t coming from the outside. It’s coming from inside the citadel, perpetrated by the very chieftains who are supposed…