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David Kaman's avatar

What about the buyback where the shares outstanding does not come down. Buyback used to sop up employees share issuance is not really a buyback but a fancy way to pay employees salary.

David Kaman's avatar

What about the buyback where the shares outstanding does not come down. Buyback used to sop up employees share issuance is not really a buyback but a fancy way to pay employees salary.

Clayton Capital Insights's avatar

Those don’t add any value. Buybacks executed at inflated valuations can destroy shareholder value, particularly when they are used primarily to offset stock-based compensation or are financed with excessive debt.