This is gold!! I'll be starting my presentation with the hookup analogy, duly sourced. Very lucid and informative. Thank you. I've subscribed for all your presentations!
Professor, during the presentation, it was mentioned that buy-back route is preferred when employees (Leadship teams) are presented with more options. Isn't it un-ethical as company is not working in the interests of share holders? Besides, doing buy back would decrease the Market Capitalization thereby value of the company in the public realm decreases? is my understanding right?
Doesn't he mean buy back as in buy back the company's stock? This makes each remaining shareholder have a larger percentage ownership of the company, and this causes stock price to rise.
If it is better for the firm employee who is getting shares as compensation, it's better for the non-firm holder as well. You make a great point, a cash dividend payout is less valuable for owners than stock buybacks.
Maybe corporate dividend policy should be set by way of direct shareholder vote (on a one-share-one-vote basis) instead of being in the hands of corporate boards and CEOs. If such a move resulted in higher dividend payout, in general, we might see a shift away from buy low, sell high, casino/trader mentality, favoring a longer term, investor mindset, with the hopes of softening the boom and bust cycles. After all, whose money is it, anyway?
This is gold!! I'll be starting my presentation with the hookup analogy, duly sourced. Very lucid and informative. Thank you. I've subscribed for all your presentations!
Thank you very much❤
Professor, during the presentation, it was mentioned that buy-back route is preferred when employees (Leadship teams) are presented with more options. Isn't it un-ethical as company is not working in the interests of share holders? Besides, doing buy back would decrease the Market Capitalization thereby value of the company in the public realm decreases? is my understanding right?
Doesn't he mean buy back as in buy back the company's stock? This makes each remaining shareholder have a larger percentage ownership of the company, and this causes stock price to rise.
If it is better for the firm employee who is getting shares as compensation, it's better for the non-firm holder as well. You make a great point, a cash dividend payout is less valuable for owners than stock buybacks.
Thank youu
Maybe corporate dividend policy should be set by way of direct shareholder vote (on a one-share-one-vote basis) instead of being in the hands of corporate boards and CEOs. If such a move resulted in higher dividend payout, in general, we might see a shift away from buy low, sell high, casino/trader mentality, favoring a longer term, investor mindset, with the hopes of softening the boom and bust cycles. After all, whose money is it, anyway?
OMG Professor, Do you know? I have an individual task to summary ur video