Anyone else wondering how much of it landed in LT's pockets while they have "successfully" and quietly (from the Street) laid off people a few times last year or, possibly, underinvested in R&D, cut costs up and down in all lines, so taking an extremely short term view of business investment... While a few sets of LT contributed to the downfall, this set takes the cake... in making sure there is no return.
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The buybacks are designed to reward the ELT. In theory a buyback increases the value of shares as there are less available to trade. As a result the share price goes up.
As the ELT have awarded themselves millions in RSU's, they would have expected a buyback scheme would again reward them handsomely as their RSU's would have gone up in value.
Only factor they didn't take into account is the dismal performance of the company and so wall St can see through their facades and as a result you have a SP being hammered.
It is the only card left to play…. Fed by layoffs.
It's just a sad situation for anyone left at Teradata.
There's nothing you can do to get into a market leadership position at this point.
Just service the existing customers and wait for the time you get laid off.
Gotta do buybacks to offset the dilution caused by stock giveaways to the mighty and highly successful LT. Oyy…