Intel got the technology sector rolling this morning by announcing that it would be shelling out big bags of cash to buy back its own shares from Wall Street. The company also did a modest increase of its dividend. Rather than give a big cash payout to shareholders, Intel has taken the financial engineering approach and set …
> authorisation to buy up to $4.2bn in shares from its board of directors
I do hope it's the authorisation that's coming from the BoD & not all those shares, but given the "because (I say) I'm worth it" school of director remuneration it's not utterly unbelievable
Buy back = bonu$
Screw the stockholders, lets pay ourselves a big fat bonus!
A big fat two way bonus directly and through stock options.
Buy back is good only for the top brass
Usually the bonuses of the high-rank management are tied to both earnings per share and the value of each share, on the premise that increase in these means that the company performs better.
Buybacks *artificially* increase these figures without any actual improvement in the situation of the company. The big corporate bosses use this trick to enhance their salaries.
They should have given it all as a dividend.
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