The quote describes stock grants and stock options for managers (and employees). That's orthogonal to the question of dividends vs buybacks. An individual inve

The quote describes stock grants and stock options for managers (and employees). That's orthogonal to the question of dividends vs buybacks. An individual investor might prefer dividends for tax reasons, while a mutual fund might prefer buybacks. But other things being equal, both sorts of investors don't want unnecessary dilution.