Research and analysis

Share repurchases, executive pay and investment

Research exploring whether share repurchases are used to meet performance targets of senior executives, and whether they displace investment. (BEIS Research Paper No. 2019/011).

• From: Department for Business and Trade and Department for Business, Energy & Industrial Strategy
• Published: 19 July 2019

Documents

Share repurchases, executive pay and investment

Ref: BEIS 2019/011

PDF, 1.43 MB, 152 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@beis.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Details

This research investigates any connections between executive pay incentives and share buybacks, and between share buybacks and investment levels. It expands the existing evidence base with UK-specific data using econometric, case study and survey techniques.

The report will be followed by research into the potential for a direct link (rather than through the use of buybacks) between the existence of executive pay targets and investment levels in companies. The research will investigate the extent to which pay incentives and performance targets can result in short-termist executive decision-making.

Published 19 July 2019