Excess Share Buybacks

Many asset owners globally are grappling with the challenge of how to use their investment portfolios to catalyze an economy that is more equitable, just, and sustainable. While much attention is paid to direct investments for impact, those same asset owners usually have substantial exposure to the public equity markets, where short-termism and value extraction are rampant.  A glaring example is the excessive practice of share buybacks. This one-page briefing summarizes key issues with excessive share buybacks.