Process
Status Items Output None Questions None Claims None Highlights Done See section below
Highlights
id601615640
GM’s CEO Barra makes $29 million a year—362 times her company’s median employee salary. In an interview with CNN, Barra explained that 92 percent of her compensation is “performance based,” meaning that much of her pay is determined by the company’s stock value. In “pay package” arrangements, executives are paid in stock, or equity, but are only allowed to cash that stock when its value reaches a certain threshold.
✏️ So the ceo argues that her package is based on stock performance… 🔗 View Highlight
id601615686
When companies buy back their stocks, it removes shares from the market, increasing the value of the shares that people already hold. It’s particularly beneficial for share sellers, like private-equity and hedge-fund managers, who can sell those shares at a profit.
✏️ Then you see that the buybacks they’ve been doing manipulates the stock price by inflating it. How convenient. 🔗 View Highlight
id601615595
The US government considered these stock buybacks a form of “market manipulation” like insider trading until 1982, when President Ronald Reagan’s administration legalized them as part of his deregulatory, free-market “Reagan Revolution.”
✏️ Some more backdrop on stock buybacks that I didn’t know. 🔗 View Highlight
id601615890
In an analysis, Lazonick found that between 2012 and 2021, the 474 corporations included in the S&P 500 Index funneled 4.2 trillion to shareholders as dividends, another 41 percent of their net income.
✏️ Insane numbers across all the industries, in terms of their collective stock buybacks and dividends.. Money for the wealthy, at the cost of the working class, investments and R&D. 🔗 View Highlight