gentoobro on Nostr: Buybacks are a way of driving up the stock price. It's a round-about way of paying ...

Buybacks are a way of driving up the stock price. It's a round-about way of paying the stockholders, which usually includes the upper executives.

Mainly though, CEOs often have bonuses specified in their contract for increasing the stock price. Ostensibly this is because they made the company better or stronger. In reality the CEOs just loot the company to temporarily drive up the stock price in order to collect a huge bonus. "Leveraged buybacks" are when the company takes out a fucking loan in order to buy its own stock so the CEO can get a big bonus.