There’s also a dirty secret about why some executives love stock buybacks: In certain instances, they can have an impact on executive compensation by goosing certain metrics that boards use to measure a company’s performance. (source infra)
The Truth Hidden by IBM’s Buybacks - NYTimes.com: "...“IBM’s financials make it self-evident that its stock-rigging strategy is not about value creation through ‘investment,’ ” David A. Stockman, the director of the Office of Management and Budget under President Ronald Reagan and a banker on Wall Street, wrote on his website earlier this year. “IBM is a buyback machine on steroids that has been a huge stock-market winner by virtue of massaging, medicating and manipulating” its earnings per share...."
Follow @johnmpoole
