In a working paper, Roosevelt Senior Economist and Policy Counsel Lenore Palladino investigates whether stock buybacks occur more frequently, independent of other factors, when corporate insiders are selling their own personal shareholdings. In her empirical analysis of the relationship between insider sales and stock buybacks, Palladino finds that a 10 percent increase in insider sales

Economic inequality is on the rise. Corporate “shareholder primacy” means that the vast majority of today’s record corporate profits are used to increase the wealth of shareholders, through dividends and stock buybacks.[1] Meanwhile, real wages for non-executive workers have essentially remained stagnant for decades. Increasing worker bargaining power in the 21st century is necessary, and

The pharmaceutical industry isn’t working for most people in the US. Over 80 percent of Americans across the political spectrum believe that lowering drug costs should be a “top priority” for lawmakers and believe that prescription drug costs are “unreasonable.” This growing scrutiny presents an opportunity to question the ways that drug corporations run business, as

For nearly half of a century, America’s public corporations have been driven by a shareholder primacy approach to corporate governance, increasingly prioritizing shareholder payments over other, more productive uses of corporate resources. Over the same period, employee bargaining power has decreased and wages for nonexecutive workers have remained flat across sectors. In Ending Shareholder Primacy in Corporate Governance,

FOR IMMEDIATE RELEASE: February 14, 2019 CONTACT: Ariela Weinberger, aweinberger@rooseveltinstitute.org   Roosevelt Senior Economist Explores Corporate Prosperity and the Decline of Employee Bargaining Power Research finds that the rise of shareholder primacy has contributed to America’s high-profit, low-wage economy   NEW YORK, NY – Today, the Roosevelt Institute, a New York-based think tank that promotes

One justification made by proponents of stock buybacks is that the practice is an effective way for funds to flow from companies that do not “need” the cash out to shareholders, who will then invest it in companies that are issuing new shares to finance firm activity. Does this explanation show up in the data?1

Today, Senator Bernie Sanders (I-VT) and Congressman Ro Khanna (D-CA) introduced the STOP Walmart Act, which prohibits large companies from engaging in stock buybacks unless they make serious investments in their workers. While the act takes aim at Walmart, the country’s largest private employer, it highlights the theme of my work: that excessive giveaways to

The 2016 corruption scandal at Wells Fargo, in which executives pressured employees to meet “wildly unrealistic sales targets,” created a work environment described as “relentless pressure.” Once revealed, the massive fraud committed against millions of consumers led to congressional hearings, substantial fines by state and federal regulators, and a series of announced changes by Wells

Corporations today operate according to a model of corporate governance known as “shareholder primacy.” This theory claims that the purpose of a corporation is to generate returns for shareholders, and that decision-making should be focused on a singular goal: maximizing shareholder value. This single-minded focus—which often comes at the expense of investments in workers, innovation,

MEDIA ADVISORY: August 15, 2018 CONTACT: Kendra Bozarth, kbozarth@rooseveltinstitute.org STATEMENT: Roosevelt Institute Policy Counsel Responds to Bill Introduced by Sen. Elizabeth Warren to Amplify Worker Voice New York, NY—Today, Sen. Elizabeth Warren (D-MA) introduced legislation that would require large corporations to consider the interests of employees and other stakeholders in their decision-making. The Accountable Capitalism Act