Buybacks: A Tempting Target But An Empty Piñata
By John Tierney
(5 min read) |
The $2.2 trillion stimulus package signed into law last week (aka the Coronavirus Aid, Relief, Economic Security Act, or CARES) has prompted an outcry from people upset at what appears to be generous provisions for Corporate America. Particular ire has been directed at executive compensation and share buybacks. Accordingly, the final legislation included language limiting dividends, buybacks and increases in executive compensation (although these can be waived on a case-by-case basis).
The $2.2 trillion stimulus package signed into law last week (aka the Coronavirus Aid, Relief, Economic Security Act, or CARES) has prompted an outcry from people upset at what appears to be generous provisions for Corporate America. Particular ire has been directed at executive compensation and share buybacks. Accordingly, the final legislation included language limiting dividends, buybacks and increases in executive compensation (although these can be waived on a case-by-case basis).
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