alt Hacker NewsThere 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.
> There is no evidence to indicate buybacks reduce long term incentives for executives compared to dividends.
If I am bonused on earnings per share, and I have a button to increase earnings per share mechanically (without needing to increase revenue or decrease costs), why wouldn't I push that button?
Can you share some evidence around your statement? i.e. "There is no evidence to indicate buybacks reduce long term incentives for executives compared to dividends."