Member Info for longtimeinvestor

F
You have started to go in circles just as the previous 2 dozen people did.
Buyback has NOTHING to do with share based schemes/remuneration for staff.

In total 3.465 Billion less shares are on the register than if the buybacks hadn't taken place.

TFE
A daily rns as you know is produced for each day of a buyback saying how many shares purchased and the average price. A simple calculation in a spreadsheet using these figures will give you the cost.

TFE
at a cost of about £2.09 Billion

F
As I pointed out earlier - an employee who was in a 3 or 5 year SAYE (where they pay for their shares), if that had any common sense would have cancelled their savings and purchased shares in the market instead at low levels.

TFE
The 2018 buyback means that there are 1.578 Billions shares less shares on the register than there would be now.
The 2019 buyback means that there are 1.887 Billions shares less shares on the register than there would be now.

So in total 3.465 Billion less shares than there would otherwise be now.

F
''but the buyback is meaningless ''

It is not meaningless - a buyback will take X amount of shares off of the share register

F
'' purchase the shares into Treasury''

That is also a cost to the business .
Purchasing for example £10,000 worth of shares in the market (shareholders money) to give to an employee as a bonus.

A £1.2 Billion buyback conducted at an average 60p including costs will reduce the share count by 2 Billion shares .
Simple

F
''the point I'm trying to make''

I am afraid you are following on from a couple of dozen people before you trying to make 'the point'.
The fact is a share buyback programme has NOTHING to do with share schemes.
A buyback will reduce the share count by how ever many can be purchased with the money available.

F
''if Lloyds issue''

IF doesn't come into it. Most large financial institutions or indeed most large quoted corporations would have share based schemes as part of the overall remuneration to attract the calibre of staff required.
They have NOTHING to do with the reduction in share count as a result of a buyback programme.

F
''You should have pasted the complete paragraph:''

OK
"Shareholders will benefit, sort of, as they will prevent dilution, but overall it wont do much to reduce the number of shares in issue."

A buyback will result in X less shares in issue than without a buyback. X being the number of shares able to be purchased with the buyback money allocation.
Simple.

F
''but overall it wont do much to reduce the number of shares in issue.''

A buyback will result in X less shares in issue than without a buyback. X being the number of shares able to be purchased with the buyback money allocation.
Simple.

psk
The winners are any employees locking in a discount when the Lloyds share price was near the lows , if the timing worked out..

PSK
If that were the case involving a 5 year plan, I would have thought there is the possibility of a low take up. Don't know the sort of discount these days but a 20% discount would take it to about the current share price.
Anyone in such a plan with any common sense would have ditched it a long time ago with a chance of purchasing in the market at much lower than the strike price,down to below 24p.
Also with any 3 year maturing now - strike price 46p? - plenty of opportunity to purchase a lot lower in the market.

SS
longtimeinvestor
Posts: 15,687
Price: 500.20
No Opinion
Just sold Wed 16:20
a few of my shares at just over 500p that I bought at about 285p -

As I have previously said SS - buy low, sell higher.

SS
longtimeinvestor
Posted in: HSBA
Posts: 14,023
Price: 286.70
No Opinion
Just topped up21 Sep 2020 10:58
at 285p

SS
''certainly not a long term one.''

You appear to be getting more jealous by the post - not a very nice trait .
As I have already said which you choose to ignore, I have been investing since the age of 18, which means I have been a very long term investor.
I have been invested here for about 25 years uninterrupted.
I have been invested in HSBC for about 30 years uninterrupted.
I could give you a long list of other companies if you wish.

SS
''certainly not a long term one.

T
''Spread over the year little more than tokenism''

There is a limited amount of purchases that can be made via buybacks over a 12 month period.
12 month periods follow one another.

F
''they appear to have used Covid as an excuse to change the strategic direction of the bank, at the expense of shareholder dividends.''

Prejudging - we do not yet know to what extent the returns to shareholders will look like until next month. There is the possibility that they could use a 'special' for a year or two until being phased out to transition into a 3p + normal dividend payments, and of course buybacks to take us below the 70 Billion share count threshold. The BOD have been given authority to purchase up to 7,088,402,568 shares.