Saturday, December 6, 2014

The real news you can use!

 Higher wages…..don’t count on it……big companies are too busy using that revenue to buy back their own stock!  Why do they do this?  Well they always say its to reward their shareholders, those people who take their hard earned money to invest in the company through stock purchases.
When companies buyback their own stock it can actually drive up the price of the stock, because they buy very large amounts of their own stock.  The reality is that many companies use stock to compensate the Managers, Directors, and Officers of the company. Sure they all have a salary, but that is dwarfed by the compensation they receive in stock rewards. This practice is usually limited to only those level of employees that are managers and higher.

The employees who actually do most of the manual blood and guts work for companies are most often not included when those stock certificates are handed out. So when big companies buyback their own stock they are actually rewarding themselves, but only at the higher levels. They can also use that stock they buyback to issue more stock rewards to those higher level employees. Most of the lower level employees are completely unaware that this is even happening. So you can work for them for 7 years and even when the company is profitable you can bet that your annual wage will remain the same, if you wonder why……think stock buybacks… for thought…..Apple recently bought back over $1 billion dollars of its own stock!!  They didn’t hire more people and issue raises…..they bought stock!


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