While buybacks are often seen as a way to boost the share price without raising the dividend, this is a more routine act. Ford buys back stock occasionally to offset the dilutive effect of new restricted stock issued annually to top management as part of their compensation.
The buyback also offsets the expected conversion of Ford's 4.25% notes that are due
The combined share repurchases will reduce diluted shares by about 3%, the company announced today. The stock will be bought in the open market over the next year.
"These actions are consistent with our overall capital strategy to take anti-dilutive actions and position ourselves to further reduce debt,"
The board met today in advance of Thursday's annual shareholder meeting in
Holders of the 3.9 billion shares of outstanding common stock are invited to attend, but only a few do. The Ford family also holds almost 70.9 million shares of
Among proposals on the shareholder meeting agenda is a call for all shares to be treated equally and end the enhanced voting status of the
A slate of 16 directors is up for election, including newcomers
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