Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

> In the past 15 years Intel has spent almost $100 billion on stock buybacks.

This is the main reason that I dislike stock buy backs, they reduce R&D investment.

If you want to give your investors a prize, pay a dividend. Otherwise, invest in your company!



Stock-buy backs are basically just dividends with a better tax treatment.


There is also the benefit to any exec whose compensation is related to a rising stock price, right?


That depends on the comp structure.

Usually comp structures look at multiple metrics that owners want to see. Owners prefer stock price to dividends, so they reward it more.


Buybacks and dividends are the same thing. Money leaves the company to go to shareholders. Neither is better/worse for R&D.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: