News for hackers. Stuff that matters.

A comment on Stock buybacks are dangerous for the economy. Parent comment

Re:Stock buybacks are dangerous for the economy by digitaltrees on Tuesday March 17, 2020 @05:15PM (#22610530)
That’s true and a good general guide but the current incentives for the executive team to under invest in long term health of a business and boost short term profit are overwhelming this rational analysis.
[ Parent | on HN ]
Re:Stock buybacks are dangerous for the economy by s1artibartfast on Wednesday March 18, 2020 @02:00PM (#22619442)
The incentive for the executive team are set by the board and shareholders, who could easily restructure incentives to favor R&D investment. Whether is this is good for long term profit will be different from case to case.

I worked at a company where annual goals routinely included invest X billion on new technology acquisitions. Some of this money sticks and some doesn't.

[ Parent | on HN ]