alt Hacker NewsDividends don't grow the stock as quickly. They can and will do that, but the goal is to change the incentive structure back to long term growth and not "stock buyback and dip from company in a year".
Dividends don't grow the stock as quickly. They can and will do that, but the goal is to change the incentive structure back to long term growth and not "stock buyback and dip from company in a year".
There is no evidence to indicate buybacks reduce long term incentives for executives compared to dividends.
If anything, all the businesses with the most long term growth have done the most buybacks because they are paying the employees in stock, which employees gladly accept because they bet the business will have long term growth.
And executive compensation is not vested until business targets are met a few years in the future.