Mar 20, 2020 - Economy

Biden calls on CEOs to refrain from stock buybacks amid coronavirus bailouts

Joe Biden.

Photo: Mandel Ngan/AFP via Getty Images

Joe Biden called on CEOs on Friday to make a commitment against stock buybacks, as the country deals with the coronavirus pandemic.

Why it matters: The demand comes as an increasing number of industries have called for economic relief from the effects of the pandemic. Companies in many of those industries have come under fire for using extra funds from tax relief to repurchase their own shares in recent years.

  • President Trump told reporters Thursday he would be okay with banning companies from buybacks as a condition for federal relief.
"I am calling on every CEO in America to publicly commit now to not buying back their company's stock over the course of the next year. As workers face the physical and economic consequences of the coronavirus, our corporate leaders cannot cede responsibility for their employees."
— Former Vice President Joe Biden on Twitter

Go deeper ... Stock buyback binge: 2019 is setting a record pace

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