If the last 5 years has taught us anything, it should be that companies shouldn’t be paying CEOs 46m in compensation, private jets, private offices with unlimited amenities, etc. They should be paying that money into the actual company to invest in employees and innovation, NOT management.
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the worse the company does the more CEO gets paid
there appears to be a disconnect from reality
or the more obvious reason is we are in a class system
and most of the people he are not in the upper class (including myself)
They repurchase shares, because they have to return money to the shareholders. Corporation is not about employees but shareholders.
If you don’t grow the business as expected, then shares are sliding. And as BOD you have to try to sustain the price and also send a signal to the market that management thinks that shares are cheap.
Another reason they do it is because they simply cannot come up with a better employment of the capital available. Lack of ideas that will bring more ROI (earnings).
So, the only solution to the hoard of cash - buy shares, reduce the anmount on the market and thus increase EPS.
I must say, Matt and his team are doing a good job from finance POV trying to mask a terrible performance of the rest of the C-Suite.
Agree with you but the reality is the CEO isn't the only clown at fault here. Whoever thought hiring a software consultant to run a brand like Nike is at fault. The decision to pull back from wholesale thinking Nike has the operational ability to sell direct proves he is a mo--n. The other mo--n HON is equally at fault for that mo--nic endeavor that distracted the brand from what made it great.
How do you feel about the 84.9 million shares repurchased equaling 9.1 billion dollars?
Would that money have been better spent internally on employment and capital assets?