4 ms·
What are stock buybacks, then? They're more employee hostile than dividends, that's for sure.
by oblio 4y ago
What are stock buybacks, then? They're more employee hostile than dividends, that's for sure.
- JumpCrisscross 4y ago> They're more employee hostile than dividends, that's for sure Why are buybacks more employee hostile than dividends?
- oblio 4y agoBecause I have to sell the shares and I get a bunch of cash. Dividends could happen yearly and for significant amounts, considering how cash rich these companies are. For the whales, sure, they're great, since they do the whole "borrow against the share price and extend forever".
- UncleMeat 4y agoBuybacks are actually better for employees with unvested grants. If you have 100k in unvested stock and a dividend is issued, you get nothing. But an equivalent buyback raises the price and now you vest a higher amount.