> SA writes (tough to tell, channeling Jensen?):
>
>> The managers should return the money to investors so that it can be
>> reallocated to more efficient companies.
That's Jensen, not me!
> Except the managers were put into a conflict-of-interest situation:
> share buybacks tend to decrease supply of stock and raise the share
> price, and since equity options became a big portion of compensation,
> the choice was clear ...
It doesn't matter - Jensen assured us that in the near future all companies would be LBOs. That was in 1983, I think.
SA