By Andrew M. Silton “If you are the CEO of public company a sizable portion of your compensation is based on a single decision: how much of your company’s stock should be repurchased. The financial press is awash in articles describing…
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As share buybacks wane investors feel the pain
By Xavier Brenner “One of the big mysteries behind the bull market that kicked off in March of 2009 is how stock prices have powered higher and higher without the mainstay support of retail investors. Turns out companies with cash…
Investing in own stock, may compromise companies’ long-term growth
By Qingqing Chen “While stock buybacks have gained momentum on Wall Street over the last five years, economists are becoming more and more cautious about the motives behind them. Despite a slight decline in the third quarter of 2014, the…
What Apple Should Do with Its Massive Piles of Money
By William Lazonick “An Open Letter to Tim Cook, CEO of Apple Dear Mr. Cook, In a recent article posted on this website, I criticized Carl Icahn’s call for your company to intensify its stock buybacks. In this letter, I’d like to explain more…
Buybacks: Money well spent?
The Financial Times contributors, Michael Mackenzie, Tom Braithwaite and Nicole Bullock ask whether the buybacks of corporate stocks are the money well spent? Click here to read the full text.
Capitalism revisited – reform is good capitalism
By Pano Kroko “I led a two day High Level Economic, Business, and Finance Summit on Capitalism in London and these are the conclusions we arrived at and the actions we aim to take in the near and longer term:…
Mortgaging America’s Future
By David Brodwin “Around 1980, The U.S economy took a dramatic and dangerous turn. From the end of World War II until the late 1970s, wages advanced roughly in parallel with productivity. As workers got more productive, companies got more profitable,…
Profits sans prospérité
By Stéphane Lauer “Voilà cinq ans que la récession a pris fin aux Etats-Unis. Enfin, officiellement. Car le retour à meilleure fortune est sans doute plus palpable à Wall Street qu’à Main Street (pour l’Américain moyen).”… [Click HERE to read…
Has capitalism reached a turning point?
By Steve Denning “In the early 16th Century, the movement objecting to the flagrant greed and corruption in the Roman Catholic Church, now known as the Protestant Reformation, got under way in earnest. In 1517 in Germany, Martin Luther posted his…
Share buybacks: Symptoms of a decaying economic order
By Nick Beams “The extent of the parasitism at the centre of the US economy and financial system is indicated by recent figures on the level of corporate buybacks. Rather than using profits to finance increased investment in equipment, as…
