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Apart from irresponsible behavior of not reducing debt or not keeping enough money reserves, few other points to note: - CEO and the executive board gets pay ri
by guru4consulting 7y ago
Apart from irresponsible behavior of not reducing debt or not keeping enough money reserves, few other points to note:
- CEO and the executive board gets pay rise based on stock price increase which is a silly math because the total market cap does not increase..
- Share buyback gives a quick boost to share prices, and often, the executives have found to be selling shares immediately after share buyback. It's almost like they pre-plan the buyback and following stock sale. There are many studies showing this to be a more common practice.