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Buybacks remain one of the most debated capital allocation tools in modern markets. While buybacks can support long-term value creation when used thoughtfully, concerns persist around timing, executive incentives, disclosure practices, and the potential tradeoffs with long-term investment.
This playbook outlines practical considerations for companies, investors, and policymakers to help evaluate buybacks through a long-term lens — focusing on strategy alignment, governance, transparency, and sustainable value creation rather than short-term market reactions alone.
Investor-Corporate Engagement | Report
6 October 2020 - Returning capital to shareholders is an important and legitimate goal of many corporations. Buybacks are often an effective way to distribute capital, but care must be taken to mitigate downfalls related to personal gain and enrichment, poor timing, and excess leverage.
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16 June 2021 - By Allen He, CFA As the global economy rebounds, companies are preparing to launch a record wave of buybacks. Buybacks have become a global phenomenon over the past 20 years, with many companies viewing them as an attractive alternative to dividends in returning capital to shareholders. They are flexible, recycle excess cash to the economy, and provide tax advantages in certain jurisdictions. While buybacks can indeed be an effective way to distribute capital under certain circumstances – and can be used to signal to investors that their...
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15 June 2022 - Buybacks are a recurrent topic of controversy, especially as guidelines seem to shift year to year and differ from country to country. In the US, the Biden administration put forth a new proposal, upping the ante after last year’s proposed 1% tax on buybacks (intended to raise billions in tax revenue). The White House’s most recent proposal would prevent executives from selling their shares for three years after repurchasing stock, in the hopes that this will quash the incentive to repurchase shares in the first place.