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> Buy back shares, return capital to shareholders, and let shareholders invest in something else. Or GE could invest in increasing wages, particularly for the

> Buy back shares, return capital to shareholders, and let shareholders invest in something else. Or GE could invest in increasing wages, particularly for the lowest-paid workers. Return capital to the actual producers of the capital.

abakker 7y ago
This is important, especially for those workers who do not qualify for a 401k. There is an interesting problem where if workers get a 401k or IRA, then buybacks probably help them by driving asset appreciation in a tax free investment vehicle. BUT, if you don't get that, then appreciating equities doesn't do you any good. In general, the answer is probably a moderate amount of all proposals. Increasing wages is certainly something that companies should be doing. Finally, some portions of buybacks are used for equity awards to employees, so it is possible that buybacks might end up as tax-privileged payments to workers, albeit not to the ones who are most dependent on wages.
cutemonster 7y ago
That'd permanently increase the expenses and reduce the dividends and stock value? (So maybe therefore the CEOs won't increase the wages unless people start resigning?)
- wcarron 7y ago
  Yeah, it's called investing in your employees. It is growth, just not for shareholders. Shareholders do not have a divine right to all the benefits a company can produce. Stocks/dividends/buybacks are a system designed to capture all profits. No surprise and nothing really wrong there, but what annoys me is that shareholders like to pretend that __unless all profit goes into dividends/buybacks, it's a waste and a sign that the company is making poor decisions__, which is not the case. It does not take into account the lives of employees beyond the cost to company. That is also a perfectly reasonable investment for a company to make and, in fact, is one that it has a duty to invest in. Stock value is reduced because petty shareholders refuse to acknowledge that workers deserve growth from company profit just the same as they do.
closeparen 7y ago
Paying above market is not an "investment," and redistribution is not GE's job. Just collect taxes on those profits and let the government cut whatever checks it feels need to be cut.

abakker 7y ago

This is important, especially for those workers who do not qualify for a 401k. There is an interesting problem where if workers get a 401k or IRA, then buybacks probably help them by driving asset appreciation in a tax free investment vehicle. BUT, if you don't get that, then appreciating equities doesn't do you any good. In general, the answer is probably a moderate amount of all proposals. Increasing wages is certainly something that companies should be doing. Finally, some portions of buybacks are used for equity awards to employees, so it is possible that buybacks might end up as tax-privileged payments to workers, albeit not to the ones who are most dependent on wages.

cutemonster 7y ago

That'd permanently increase the expenses and reduce the dividends and stock value? (So maybe therefore the CEOs won't increase the wages unless people start resigning?)

wcarron 7y ago
Yeah, it's called investing in your employees. It is growth, just not for shareholders. Shareholders do not have a divine right to all the benefits a company can produce. Stocks/dividends/buybacks are a system designed to capture all profits. No surprise and nothing really wrong there, but what annoys me is that shareholders like to pretend that __unless all profit goes into dividends/buybacks, it's a waste and a sign that the company is making poor decisions__, which is not the case. It does not take into account the lives of employees beyond the cost to company. That is also a perfectly reasonable investment for a company to make and, in fact, is one that it has a duty to invest in. Stock value is reduced because petty shareholders refuse to acknowledge that workers deserve growth from company profit just the same as they do.

closeparen 7y ago

Paying above market is not an "investment," and redistribution is not GE's job. Just collect taxes on those profits and let the government cut whatever checks it feels need to be cut.