Sirschnitz:

Andy, don't you agree that Mozillo was in a position to influence (understatement) the decision whether to buyback CFC stock or pay higher dividends?  The important question is, who benefited from buybacks (of overpriced CFC stock)?  Apparently not long term shareholders.

The article points out that Mozillo was a prime beneficiary of CFC stock buybacks.  Long term CFC shareholders would have been better off with dividends.  As you point out (in the case of CFC),  to benefit from buybacks, you had to sell.  This seems rather perverse for long term shareholders, unless of course, they are receivers of stock options, as Mozillo was. 

"You could have sold at that price too."

No.  I never owned CFC and was never offered nor bought any CFC options. 

"He undoubtedly held a lot of shares that became near worthless, just like you and me."

I hope you did not hold much CFC stock.  As I said, I didn't own any.

Regards,

Russ

Russ,

This is why I hate share buybacks.  The last people to benefit from a share buyback are investors who currently hold positions in the stock. 

I am always concerned that when management starts buying back stock, they're doing it to force the price higher (basic supply vs demand) and then exercise their options so that they can make a quick buck, at the expense of the long-term investor.

How do you or I benefit?  We don't, unless we sell our shares,  which I don't want to do.

Regards,

Dave