there is a really good reason for the buyback. Management currently receive a large portion of their pay for the share price performance. A buy back will stem the price plunge and maximise their pay. Realistically, given the earnings revision, the shares are expensive and management would know this.
No doubt the buy back is a decision made by management focusing on their end of year pay at the expense of your longer term share performance. Perhaps they have retirement plans brewing and want a short term return.
Hopefully there is a big protest vote. The timing is a little suspicious given voting paperwork was already issued and in many cases shareholders would have voted before reading this announcement!
I'd say it is worth voting against management if you will have your proxy forms!
CCL Price at posting:
$9.61 Sentiment: None Disclosure: Held
