I try to be zen about all the sh-t going on in our company, but tonight I’ve reached my limit. All it took was a trip to Target and one look at the bill. Inflation is rampant and eroding the spending power of the vast majority of us because our raises were sh-t. So many good people got next to nothing - or actually nothing. But the corporation has $10 billion to spend on stock buy backs. Fu----g pathetic.
11 replies (most recent on top)
$10 Billion should go into Rainy Day Fund.
Pay off all debt.
Dallas needs to stop stock buybacks at peak stock price then the stock price drops with zero effect from the buyback.
Buy any other company’s stock than EM so that the value does not disappear like the $200 Billion already thrown away on buybacks.
What if EM had purchased $200 Billion in Apple stock years ago instead of the vanishing buybacks?
@kbh+1fioEl5n Buying back at 30 dollars? When at 30 dollars, where do you suppose EM to come up with $$$ to buy back shares? I bought a bunch myself. LOL
Have to buy it back so we can create more RSUs and executive bonuses. We have more board members to feed. Bigger trough to fill for the board pigs to feed at.
The only shareholders rewarded by buyback programs we those poor RSU holders.
The maturity of their shares and therefore materiality of their total comp is directly affected by this.
Executives have no shame.
Actually, they should have been buying back stock like it was going out of fashion when it was 30 dollars, not 80. Look at the dividend saving return on spend back then...
EM stock price has never risen due to stock buybacks.
EM buys back stock, stock price lowers, EM worth less than before buyback because fewer shares multiplied by lower stock price.
EM would have been far better off buying Chevron stock with that $205 billion instead of buybacks.
Welcome to Corporate America!
We all owe gratitude to Milton Friedman. Not! Milton Friedman was the most evil to the core.
- when the fed lowers interest rates corporations like exxon take advantage of these low rates by selling bonds to big investors.
- even once great companies like exxon are so leveraged their credit rating can plummet if they are not careful, which happened.
- the fed hopes that companies like exxon will put the borrowed money to use and invest in their workforce and infrastructure.
- but in reality the borrowed money results in stock buy-backs. companies like exxon will buy back their stock to make the remaining shares more valuable and the stock price higher. the corporation is only concerned in the stock price at this point.
- companies like exxon will use that borrowed money to invest in technology to eliminate workers to reduce employee headcounts and they will use that money to give the ceo and other corporate officers big bonuses and at the end of the day they will issue more debt and buy back more stock. its a cycle.
- the goal of management is to increase the stock price than the actual company. many companies do this.
Stock buybacks are a way to reward share holders. It has zero consideration of common employees' benefit except few execs. It's also a sign of slowing capital investment. Stock buybacks almost always happen at high stock price.
Stock buybacks are as useful as piling up the money and burning it. Zero rate of return as stock price ineffected.
Also EM only buys back stock when stock is at peak prices.
EM has bought back $205 billion worth of its own stock. Should have kept all that money in savings then purchased a couple of other companies when stock market crashed.
Keep that $10 billion and all other excess cash as a rainy day fund so that if the next Covid variant causes another crash, no need to borrow.