By Theo Vermaelen “A number of leftwing American politicians, including Hilary Clinton, have found a new enemy: share buybacks. The argument is that they are a short-term stock manipulation scheme and that firms should better use the money to invest…
AIR IMPACT
Recognition of AIR research, opinions, and people in the media and elsewhere
Verizon proves exactly what is wrong with our economy
By Liz Iacobucci “Who benefits when executives decide to spend corporate funds on stock buybacks? In my last post: In February, Verizon announced it was buying back $5 billion of its own stock. The repurchase was mostly done within days, but the…
Stock buybacks are tied to income inequality and low rates of innovation
By Richard A. McCormack “There has been a slowly rising public and political debate over income inequality, the stagnation of wages for working Americans and the growing concentration of wealth among those with the highest incomes. But there has been…
Will the digital revolution make us all poorer?
By Simon Caulkin “Whether they know it or not, life-changing economic decisions are looming for the new Conservative government. The biggest issues are productivity and jobs. Both are critical to the country’s future, and good performance would do more than…
Clinton takes soft swipe at ‘short-termism’
By Gerald Epstein “Gerald Epstein of PERI, U. Mass. Amherst, argues that Clinton does not go far enough by just calling for transparency in “short-termism” because buybacks of corporate stocks should be made illegal.”… [Click HERE to watch the interview]
Are CEOs worth that much? Not by a long shot
By Ted Kaufman “On Aug. 5, the Securities Exchange Commission approved a rule that will require major public companies to regularly disclose the ratio of their CEO’s pay to the median of the annual total compensation of the company’s employees.”……
Is short-termism a myth?
By Steve Denning “James Surowiecki, normally an insightful writer, makes a startling declaration in this week’s New Yorker: Short-termism is a myth. “It’s a common assumption, writes Surowiecki, “that companies only care about quick gains. The numbers tell a different story.”… [Click…
Why SEC’s CEO Pay Rule Matters
By Lenore Palladino “Yesterday, the Securities and Exchange Commission finally approved a rule mandating that public companies regularly reveal the compensation gap between their chief executives and the rest of their workforce. Once the first data points from the rule…
Will more regulation be imposed on stock buybacks
By Cydney Posner “Lots of companies have been buying back their stock in recent years, either on their own initiative because, for example, management thinks the shares are undervalued, or sometimes at the insistence of hedge fund activists bent on…
Inside the defense buyback bonanza
By Austin Wright “INSIDE THE DEFENSE STOCK BUYBACK BONANZA: Our colleague Austin Wright has a look at the industry’s controversial stock maneuver: “Defense stocks are soaring despite a decline in military spending because of tactics that are at odds with the…
