Here's why a lot of them do it
Posted on: March 17, 2020 at 20:06:03 CT
Mormad MU
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Executives get performance bonuses tied to "metrics". One of the most common ones used is "earnings per share". If you reduce the outstanding share quantity, you increase the EPS without any increase in actual performance, and voila, those performance bonuses kick in.
Some of them use buybacks to support share prices in the market. Some of them do it because there's no decent commercial paper to buy to park their short term cash.