Earlier quoted context omitted.
To play devil's advocate here, how is that any different from increasing your dividends?
You pay taxes on dividends.
You pay more taxes on dividends, you still pay taxes on Capital gains, just less.
French companies benefiting from state aid can't buy back shares
21–30 of 220 posts
Re: French companies benefiting from state aid can't buy back shares
#22Earlier quoted context omitted.
Right now, it's your word against Reuter's. Do you have a source?
In French : https://www.lemonde.fr/economie/article/2020/03/28/le-gouver... "Enfin, les employeurs bénéficiant du dispositif de chômage partiel, lui aussi financé sur crédits publics, sont appelés à « la plus grande modération » en matière de dividendes."
« Les entreprises qui ont besoin de trésorerie aujourd’hui, en particulier les grandes entreprises, et qui demandent l’aide de l’Etat, ne peuvent pas, ne doivent pas verser de dividendes. Et nous veillerons à ce que ce soit respecté, a souligné M. Le Maire, vendredi, sur BFMTV. Toutes celles qui auraient bénéficié de reports de charges sociales ou fiscales et qui auraient versé des dividendes se verront obligées de rembourser cette avance de trésorerie sur les charges sociales et fiscales, avec une pénalité d’intérêt. »
Dans le meme article.
Re: French companies benefiting from state aid can't buy back shares
#23Earlier quoted context omitted.
Right now, it's your word against Reuter's. Do you have a source?
In French : https://www.lemonde.fr/economie/article/2020/03/28/le-gouver... "Enfin, les employeurs bénéficiant du dispositif de chômage partiel, lui aussi financé sur crédits publics, sont appelés à « la plus grande modération » en matière de dividendes."
That's strictly false.
The article clearly states that _initially_ companies were called to moderation, and that _now_ a law project will be passed to strictly forbids this.
"Le président de la République Emmanuel Macron a franchi un cap, vendredi matin, lors d’une rencontre téléphonique avec les partenaires sociaux, en annonçant que M. Le Maire soumettrait au premier ministre Edouard Philippe un projet pour encadrer strictement le versement des dividendes. Ils devront être suspendus quand les sociétés bénéficient des reports d’échéances fiscales et sociales"
Re: French companies benefiting from state aid can't buy back shares
#24Earlier quoted context omitted.
In French : https://www.lemonde.fr/economie/article/2020/03/28/le-gouver... "Enfin, les employeurs bénéficiant du dispositif de chômage partiel, lui aussi financé sur crédits publics, sont appelés à « la plus grande modération » en matière de dividendes."
« Les entreprises qui ont besoin de trésorerie aujourd’hui, en particulier les grandes entreprises, et qui demandent l’aide de l’Etat, ne peuvent pas, ne doivent pas verser de dividendes. Et nous veillerons à ce que ce soit respecté, a souligné M. Le Maire, vendredi, sur BFMTV. Toutes celles qui auraient bénéficié de reports de charges sociales ou fiscales et qui auraient versé des dividendes se verront obligées de r…
So they can, they will just pay a penalty, which value we don't know. And that's only for guaranteed bonds. Partial unemployement is not part of it.
Re: French companies benefiting from state aid can't buy back shares
#25Prediction: that won't be a precondition in the USA, and if it was, most companies would decline the aid. You see, buybacks are "that one weird trick" where you can steal from the market, by inflating the EPS and hence your employee stock options, and not go to jail.
To play devil's advocate here, how is that any different from increasing your dividends?
It's exactly the same as a dividend, except the tax consequences are opt-in for shareholders. Only those who sell their shares are affected, unlike dividends which are equivalent to forcing all shareholders to sell an equal portion.
Buybacks are just tax efficient dividends, and all of the hate against them is from people who don't realize this and haven't thought through the math.
In the article it says this rule applies to dividends, too. So at least it's not pure pandering.
Re: French companies benefiting from state aid can't buy back shares
#26Earlier quoted context omitted.
In French : https://www.lemonde.fr/economie/article/2020/03/28/le-gouver... "Enfin, les employeurs bénéficiant du dispositif de chômage partiel, lui aussi financé sur crédits publics, sont appelés à « la plus grande modération » en matière de dividendes."
That's strictly false. The article clearly states that _initially_ companies were called to moderation, and that _now_ a law project will be passed to strictly forbids this. "Le président de la République Emmanuel Macron a franchi un cap, vendredi matin, lors d’une rencontre téléphonique avec les partenaires sociaux, en annonçant que M. Le Maire soumettrait au premier ministre Edouard Philippe un projet pour encadrer…
Again, what I say is not "stricly false" at all, I'm just quoting Le Maire. And he's just talking about taxes, not partial unemployment.
Re: French companies benefiting from state aid can't buy back shares
#27Earlier quoted context omitted.
Right now, it's your word against Reuter's. Do you have a source?
In French : https://www.lemonde.fr/economie/article/2020/03/28/le-gouver... "Enfin, les employeurs bénéficiant du dispositif de chômage partiel, lui aussi financé sur crédits publics, sont appelés à « la plus grande modération » en matière de dividendes."
You omitted the important parts:
> Toutes celles qui auraient bénéficié de reports de charges sociales ou fiscales et qui auraient versé des dividendes se verront obligées de rembourser cette avance de trésorerie sur les charges sociales et fiscales, avec une pénalité d’intérêt.
So, he asked the all companies whose employees are being partially payed by the state to be very moderate in paying dividends. But they will force all companies which are getting direct aid from the state to stop paying dividends, or pay back the aid they got, with interest.
Re: French companies benefiting from state aid can't buy back shares
#28Re: French companies benefiting from state aid can't buy back shares
#29Prediction: that won't be a precondition in the USA, and if it was, most companies would decline the aid. You see, buybacks are "that one weird trick" where you can steal from the market, by inflating the EPS and hence your employee stock options, and not go to jail.
It's not "stealing" from the market. All it does is increase the value of each share in proportion.
All else being equal it does not. Shares are worth the same as the company now has less shares but also less cash.
Re: French companies benefiting from state aid can't buy back shares
#30Earlier quoted context omitted.
In French : https://www.lemonde.fr/economie/article/2020/03/28/le-gouver... "Enfin, les employeurs bénéficiant du dispositif de chômage partiel, lui aussi financé sur crédits publics, sont appelés à « la plus grande modération » en matière de dividendes."
You omitted the important parts: > Toutes celles qui auraient bénéficié de reports de charges sociales ou fiscales et qui auraient versé des dividendes se verront obligées de rembourser cette avance de trésorerie sur les charges sociales et fiscales, avec une pénalité d’intérêt. So, he asked the all companies whose employees are being partially payed by the state to be very moderate in paying dividends. But they will…
Exactly. " he asked the all companies whose employees are being partially payed by the state to be very moderate in paying dividends", my point.