http://www.reuters.com/investigates/special-report/usa-buybacks-pay/ "Stock buybacks enrich the bosses even when business sags: Most major U.S. companies tie part of executive pay to earnings per share (supposedly) to align the interests of management and shareholders. The trouble is, these numbers can be - and often are - influenced by buybacks that have little to do with operating performance. (This happens because by reducing the number of shares outstanding, the ratio earnings per share grows even if earnings don't.) As corporate America engages in an unprecedented buyback binge, soaring CEO pay tied to short-term performance measures like EPS is prompting criticism that executives are using stock repurchases to enrich themselves at the expense of long-term corporate health, capital investment and employment." E-team, with your $1 billion borrowing binge to buy back stock, you are raiding the company treasury even as your performance sucks donkey d**ks. Now the only endgame is to rapidly open as many stores as possible, legally saddle the company with ridiculous debt, grab the remaining equity and cash out, thus foisting the mess onto someone else. Busted. Conscious Capitalism is NOT practiced here and never was.
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It might be fun to contact the top private equity buyout firms and urge them to do super triple extra due diligence prior to risking one red cent. They might find out that farts smell like a particular brand of water that comes in a lovely bottle and that management is sucking money out faster than a turbocharged vacuum cleaner. One thing I would like to suggest is that dozens of overstuffed regional lard bricks be fired immediately to enhance value because frankly (or should I say Frankie haha) IMO they don't do anything other than walk around acting important and pointing at stuff. I realize that this is vital to our core values but they'll have to go.
Getting rich selling out the company. Sounds about right from these scumbags #TeamWFM #WFMteammember
Great post..and earlier in these pages someone lisyed how many shares regional and global executives had sold or excised this year..that was quite fascinating.