The number of share buybacks is mounting and the UK is concerned that they may happen to be boosting executive pay. Board Agenda considers the arguments for and against share buybacks.
Image (cropped): Shutterstock
Share buybacks are under suspicion. So numerous have they become that there is disquiet among policymakers that something is not quite right.
At a time when investment levels remain low, the big capital allocation decision for many boards is to buy back their own shares rather than investing money into product or service development. And the UK government wants to know why.
In fact, what the government really wants to know is whether buybacks are taking place to boost executive pay. And if so, what can be done about it.
Frequent buybacks and significant events in corporate activity are occurring not only here in the UK but in
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda