institutional investors and stock buybacksAs corporate stock buybacks have grown in size in recent years, they've become more controversial. Activist investors have been pressuring companies to boost their share repurchases, while other institutional investors have argued against buybacks.

Most notably, BlackRock CEO Larry Fink sent a letter last year to CEOs of large companies urging them not to let share buybacks and dividends distract from their focus on long-term growth.

Companies traditionally have repurchased some shares to offset the stock options they issue to employees. But over the past couple of years, more companies have stepped up their share purchases to the point where they're buying back enough stock to significantly reduce their outstanding shares, said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.