FIRST AIRED: May 23, 2017

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

×

Transcript

00:00:00
nndb actors like the stock buybacks because they see them as a vote of confidence in the company's stock but as a Reuters analysis found their auto being used heavily in paying your competition , a rare thing out of her found that more than half of the SNP five hundred companies used earnings per share as one way of calculating the opac and earnings per share can be determined in part by buybacks when a company buys back morbid shares it reduces that share count outstanding and when that happens you can influence what happens to a company's earnings per share included influence the company's executives and how well they were paid some of the largest companies in the ethnically five hundred including Walt Disney co target and many others determine their executive pay through the use of earnings per share and total shareholder return measures , there are others that managed to show that their earnings per share rose in the past year even though their net income declined such as caterpillar and Nordstrom and Activision blizzard another company that did something similar was Iraq in its most recent year two thousand fourteen its earnings per share came in about the same as they did from the year prior to that however because of my back it was able to meet the target and instead out earlier in the year earnings per share and the company's CEO Ursula burns earned a bonus that in part was earned by the fact that the company net its per share target people have not been able to find an adequate metric in terms of tying performance to play , the issue here is that with workers pay flag waving CEO pay exploded the average CEO now making more than three hundred times the average worker so the shift is really occurred as more and more pain has been driven into the area of award that may not necessarily reflect how well a company doing but the fact that companies and lots of money billions of dollars a year on share buybacks