I have been scratching my head reading many of these posts. So I...

I have been scratching my head reading many of these posts. So I will try to put the share buyback decision by CSR management into shareholder perspective.

Every management decision fits in the following framework:

1. The sole purpose of management is to maximise shareholder value. Everything they do is supposed to drive that outcome.

2. Management maximises shareholder value by investing shareholder funds into activities that generate a risk- related return which is higher than the cost of those funds. Such net returns increase the value of the company - and by extension the share price rises.

Turning to the CSR share buy back decision. A share buy back is nothing more than the return of surplus funds to shareholders. It is dressed up as something that is supposed to indicate management's confidence in the growth of the company.

The reality is that management are returning those surplus funds to shareholders because they are unable to generate returns that are higher than the cost of the funds. It is not a good message. If they could make excess returns on those funds, they are failing their primary function by returning them.

I am particularly concerned with the CSR management decision on buy back. Management have effectively granted themselves a "slush fund" from our money, that they can use at their discretion in buying back shares on market - at times they choose. I hope not to see buy backs occurring around management share and options performance bonus dates.

That said, the far greater concern is the implied message in the buy back that management cannot see the opportunity to utilise those funds in the business to generate additional shareholder value. That is alarming.