“In the past decade, share repurchases have drawn the ire of many, with critics arguing that they line the pockets of executives at the expense of long-term shareholder value. However, in our view, share repurchases often accomplish the very purpose for which a public corporation exists: increasing shareholder wealth. Share repurchases serve to increase the ownership of each individual investor and boost the stock price while avoiding the income tax that accompanies a dividend.”

[COMMENTARY] Those favouring share buybacks say that it increases shareholder wealth. But is that an excuse to avoid deep thinking about long-term corporate development and investment — in favour of short-term shareholder financial gains? This paper explores this subject in detail, but I disagree with many of its premises.
Stock Buybacks: Show me the Money! By Allison Wyderka and Wickham Egan, May 11, 2025, Harvard Law School Forum on Corporate Governance, USA.