The criticism of share buybacks seems justified – Natixis

The rise in corporate earnings in the recent period has enabled a sharp rise in share buybacks. This increase in share buybacks has been heavily criticised, and in the view of analysts at Natixis, seems justified.

Share buybacks have not led to additional investment

“Share buybacks have been made possible by the skewing of income distribution against wage earners; Not led to the transfer of savings into financing more efficient investments; Primarily driven up share prices.”

“The criticism of share buybacks is justified. It is regrettable that they have not led to additional investment, especially in the energy transition.”