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Regarding the closing lines, focusing so specifically on stock buybacks is looking in the wrong place. Intel's goal was to give the money to the shareholders. C
by lacksconfidence 5y ago
Regarding the closing lines, focusing so specifically on stock buybacks is looking in the wrong place. Intel's goal was to give the money to the shareholders. Currently the most tax advantaged way to do that is with stock buybacks. If you pass some law that prevents buybacks they will just give the money to the shareholders in the next most tax advantaged way.
The only hope seems to be as they've done, hire on a CEO more concerned with innovtion than stock price. At least I hope this is what they've done.
- kevinventullo 5y agoNot exactly. If a large part of an employee’s compensation is in shares (which I assume is true for anyone sufficiently high on the org chart), and moreover the employee tends to sell the shares as soon as they are received, then dividends actually hurt the employee’s bottom line by reducing the share price, whereas buybacks help the employee’s bottom line for the same reason. This is what the author means when they say dividends help shareholders while buybacks help sharesellers.
- deleted 5y ago[deleted]