Thread regarding ExxonMobil Corp. layoffs

Unethical

https://www.zerohedge.com/markets/40-bull-market-due-soley-buybacks

Stock buybacks only support the XOM executives compensation! We are corrupt and unethical and immoral from the top down.

$10 billion buyback at $65/share is equal to the repurchase of 154 million shares.

So what do you get for $10 billion in repurchases? You now avoid paying dividends on those shares: 154 million shares x $3.52 annual dividend equals $540M in savings.

So to save $540M in dividend payments you need to spend $10 billion. Takes 18.5 years to recapture/payoff your investment.

What a great use of our dollars, eh? Sounds like corporate and our new CFO used the same analysis for repurchases that we used for Kearl, XTO, "Lean Into" and "Value Added Chain" Strategies and Tillersen's $200 billion in stock buybacks.

So who benefits from buybacks? The stock price will probably go up and EPS will go up, but to benefit you must sell your stock. So our wonderful executives will sell their stock and profit. Since our executives are hugely compensated based on stock price performance and EPS, they will get more XOM shares in 2022. And the cycle of corruption continues.

And instead of spending the $10B on high rate of return ventures, or giving us raises or fixing our crumbly infrastructure and investing for our future they will continue to PIP us, take away our benefits, no raises and lastly the pension will be dissolved.

@@1poy+1dyWIq2N Bravo! Great level to unload. Same here but need a little more upside. Consider to buy it back on the cheap - rinse and repeat. You don't need PADP to buy and sell. Might as well. LOL

I finally got my sell-point of $65 for a few hours on Tuesday.
I'm now 0% XOM in my 401K.
Don't expect to see it again.

On Buybacks - you know they'll start taxing those soon in the US.
Silly business.

Buybacks only happen when the stock is high for all companies…it basically has to be. I mean if you’ve got cash to do a buyback then you’re doing well and your stock is high. If your stock is low then you don’t have cash and can’t do buybacks.

Buybacks only seem to happen when stock price is high. Another genius trans by our management.

Maybe pay off all debt, build up 10 to 15 billion in savings, then when stock price tanks again, buy a lot.

Should've bought Tesla...

@fbf+1dyWIq2N, thank you. Someone is saying the truth now. The cuts were planned before covid. However, every single person within mgmt. at every level blamed it on COVID. Perfect yet another lie by mgmt. I heard my own boss telling us to blame everything on covid to get out of vendor contracts. And the way the pips and layoffs were executed were the worst way possible. Why? Does the mgmt. only care about $$$ and their own wealth. The answer is yes. They continue to lie at every opportunity to us.

It’s a good element of strategy. TSR is all that matters. Employees are not stakeholders. The public are not stakeholders. The environment is not a stakeholder. We’re a commodity company, so customers are not a consideration. TSR is it.

Dividends are useful but tax inefficient. Buybacks are just a way to force current shareholders to buy more XOM…by spending their cash on our shares. Don’t like it? Sell your shares. Oh, you like our return? Then keep ‘em.

Amazing what if by OP.

That $200 Billion if invested in Chevron stock instead of buybacks!

Would be worth more than $200 Billion now.

Could be sold to fund the company last year and continue investment in projects instead of pausing and layoffs.

Could be bargaining chip in our merger negotiations.

The cuts were planned before covid, these would have happened anyways. We still would have most likely taken on debt solely because it was extremely cheap. Buybacks are necessary, especially as we start opening up stock payment to lower CLs. In the company charter there’s a maximum number of shares allowed (as every company has defined) and so buying back shares is required. There’s a large number of positives of buybacks, which got thrown under the bus because politicians needed some talking points during covid.