Right, must be because I'm jealous right? NOT that GOP policies the past 45 years gutted taxes on the richest, ramped up UNFUNDED spending under Ronnie, Dubya and Cheeto, AND removed obstacles like this
In 1982, the Securities and Exchange Commission (SEC) under President
Ronald Reagan passed
Rule 10b-18, which established a "safe harbor" for corporations conducting stock buybacks. Before this,
large-scale stock repurchases were often considered illegal stock manipulation.
Here are the key details regarding this change and its impact on corporate executives:
- What was Rule 10b-18? Implemented in 1982, this rule provided a legal framework and safe harbor for corporations to buy back their own stock on the open market without fear of being investigated for market manipulation.
- Impact on Executives: The rule allowed corporations to use company cash to purchase their own stock, which typically increases the value of remaining shares. This allowed executives, who often hold significant amounts of stock-based compensation, to increase their personal wealth.
- Purpose of the Change: The move was part of the broader Reagan-era deregulation of the financial services industry, intended to encourage a more open and free market, reducing constraints on corporations.
- Long-Term Criticism: Critics argue that this 1982 rule opened the door for "corporate greed," encouraging executives to spend money on boosting share prices—and their own pay—rather than investing in innovation, higher wages, or company expansion.