Why Management Loves Share Buybacks

Share repurchases are a backdoor way to pay executives.

Buyback king?

Photographer: Matthew Busch/Bloomberg

During the past three years, members of the Standard & Poor's 500 Index have spent more than $1.5 trillion buying back stock. This has led to a reduction in their shares outstanding of at least 4 percent in just the past year alone, by some measures.

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