Originally Posted by
tdracer
An infinitesimally small amount of the money spent on stock buy-back went to the execs - over 99% directly benefited the general stockholders. In fact, run of the mill Boeing employees are among the largest stockholders - either through direct ownership or via their 401k accounts.
While the long term wisdom of stock buy-backs are open to debate, there is no question is an effective way to give back to the company stockholders when the company is highly profitable.
Worth a read from a while back.
https://prospect.org/environment/mak...lders-richer./
"Boeing CEO Muilenburg has benefited immensely from the company's soaring stock price From 2015 through 2018, as Boeing's chairman and chief executive officer, Muilenburg banked $95.9 million in gross pay, though his annual salary never exceeded $1.7 million. Of this total remuneration, 51 percent consisted of realized gains from exercising stock options and the vesting of stock awards. Another 34 percent was nonequity compensation, based in 2013–2016 on Boeing's profitability and in 2017–2018 on a more complicated set of financial metrics. Just ahead of Muilenburg's ascent to the top management position, the company notified its shareholders in its proxy statement that, for the first time, “beginning in 2014, a significant portion of our named executive officers' long-term incentive compensation will be tied to Boeing's total shareholder return as compared to a group of 24 peer companies.”
Also worth reading.
https://www.worth.com/contributor/ho...hy-capitalism/
"So buybacks, apart from near-term benefits to executives who are compensated in company shares and options, are not great builders of value. Buybacks don’t add to the size of a company’s economic pie; they simply deliver a bigger slice of the existing pie to the largest shareholders, who are usually executives of the firm. Since the largest individual shareholders of any stock are typically executives of the firm, you can understand why companies promote buybacks that raise the value of their stock. But why aren’t more investors avoiding companies overspending on buybacks"?