One of the headline tax changes in the Inflation Reduction Act of 2022, Public Law 117-169, is a 1% excise tax on stock repurchases by public companies. Public issuers should be aware that the new tax, which applies beginning...more
The Background: Corporate share buybacks skyrocketed in today's low interest rate environment and the trend is likely to continue. The Issue: Although stock buybacks are an efficient method to return cash to shareholders,...more
It is widely recognized that one of the primary causes of the current stock buyback phenomenon has been pressure from hedge fund activists....more
Proposals aim to help companies make greater use of employee share schemes and equity arrangements. On 15 February, the UK Government published its response to its consultation on the share buy back recommendations made...more
On 15 February 2013, the government published a set of proposals relating to the implementation of the Nuttall Review’s recommendations on share buybacks. The changes are designed to reduce the barriers that disincentivise...more