Share buybacks need less hate and more scrutiny

Share buybacks, once an American oddity, are taking over the world. Company repurchases of their own stock hit a global record last year of $1.3tn, triple the level of 10 years ago, according to research by Janus Henderson. While US companies remain the biggest buyers, the transactions have gained favour rapidly in continental Europe and the UK since the start of the pandemic.

But more is needed than the unbridled endorsement of activist investors or the reflexive opposition of progressive critics. Instead, we should welcome new efforts to give buybacks the considered scrutiny they have long needed.