Share buybacks can increase the price of individual shares without increasing the overall value of the company. This causes management performance options to vest in the money, without needing to actually improve the value of the company in any way. It's a good way for management to extract more money from shareholders without them noticing. Of course this is just a strategy that unethical management would follow, not Telstra management, who all have impeccable ethics.
TLS Price at posting:
$3.73 Sentiment: Sell Disclosure: Not Held
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