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by lotsofpulp
899 days ago
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When a business does a stock buyback, the business receives the stock, not any executive(s). The business might pay the executive with stock per the board approved compensation package, but a CEO does not wake up and say “I want to give myself 5M shares so let’s do a 5M share buyback”. A buyback benefits all shareholders equally by reducing supply of the stock and therefore increasing its price. |
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correct. Hence my wording
> and then award themselves options to re-dilute
It's not that executives receive the bought back stock, but that their stock based compensation plans result in no net decrease in the amount of outstanding shares.