Announced today: Wells Fargo is spending $30 billion to buy back shares (there’s currently an approximate $3 boost per share in after-market trading). That comes out to over $100,000 spent per employee to artificially boost our share price a little bit, after giving us raises for three years that are a fraction of the inflation rate along with other morale-destroying cost-cutting measures. Put that in your pipe and smoke it.
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Aaaand today, at open…drumroll, please….it’s up $1.12. Rather than fix technology or give loyal employees raises that help their families keep up with inflation, we shell out to artificially boost our share price by the price of a roll of Lifesavers.
"If they spend it before x dividend date they can save 220 million in dividends."
Usually the shares are held by the company creating a revenue stream from the dividends. They hold them to pay out in future years executive comp and our restricted shares. Look to see if the "retire" any shares. Not likely.
Also, the company will now sell shares they are already holding at much lower purchase prices to grab the bumb up the stock will take short term. It's a shell game for sure and really shouldn't be allowed. It creates hundreds of millions in paper earnings that add no value to anyone's life.
What is the exact name of the Wells stock offered in our 401k. I am a novice to say the least.
All short term thinking. Can't look beyond one quarter. Disgusting.
If they spend it before x dividend date they can save 220 million in dividends.
It f*king figures. Just yesterday I decided to move a decent portion of my Wells "stock" in my 401k to other funds. The stock hasn't been doing jack sht.
And so now they're going to do a buy back while we're laying off. $30BB to artificially raise the stock price b/c we can't get our collective sh*t together.
F this leadership. What a bunch of bozos.
Stealing in plain sight.
Report Charlie and the Board to the FBI for Corporate Self - Dealing. It is a White Collar Crime.
Sc-ms...
This should push us over 50 a share in the near future! Also note the dividend was approved and x divided date is Aug 4th payable Sept 1st. 35 cents per share. I like to move $ around to fully capture the dividend. But may just leave it all in company stock for a while this go around as 30 billion in buybacks is alot and should easily push stock higher.
@klp spending that money lowers the efficiency ratio but paying it out to shareholders...
Until CEOs are paid with something other than stock, the buyback scam will persist.
Suspicious that our Chief Executive Conman can’t think of a smarter way to invest $30 Billion: Technology, staff and software to improve oversight, tackling remaining consent orders, organizational change requested for over 5 years now from the Feds, better pay and benefits to attract real talent (not Charlie’s golf buddies).
I hope someone takes him down.
They will probably never get to $30 billion in repurchases. Most of the time corporations announce inflated repurchase “authorizations” for optics but never actually get close to the authorized amount. Yes it is an a$$hole move to be sure.
nothing new, they said they would do this in the earnings call. guess I'll sell some shares tomorrow to capture the bump
- to elaborate, I’m also a shareholder, with over 6,000 shares accumulated out of longtime paycheck contributions and equity grants. I appreciate the minor bump in share price. I also understand that at the end of the day, our share price is the authoritative measure of our success. What floors me is the magnitude of this expense on the one hand, versus the devastated morale of our company on the other. This is a jaw-droppingly myopic move, indicative of a C-suite looking for a quick payout at the expense of our firm’s long-term health.