вЂњI feel the same pressures as other C.E.O.s,вЂќ he told me. Fink says the move вЂњsends a discouraging message about a companyвЂ™s ability to use its resources wisely and develop a coherent plan to create value over the long term.вЂќ Moreover, he argues that вЂњwith interest rates approaching zero, returning excessive amounts of capital to investorsвЂќ isnвЂ™t helpful because they вЂњwill enjoy comparatively meager benefits from it in this environment.вЂќ Rather than consider the return of all this money to shareholders positively, Mr. IBM, which IвЂ™ve questioned for its aggressive use of buybacks and dividends, has spent $108 billion buying back its own shares since 2000.

Exxon Mobil spent $13 billion last year on its own stock. Apple authorized a $90 billion buyback of its own stock last year. General Electric announced last week that it would buy back $50 billion of its stock after selling most of GE Capital. United States companies spent nearly $1 trillion last year on stock repurchases and dividends, and virtually every big American company is engaged in these practices. He says that such moves were being done at the expense of investing in вЂњinnovation, skilled work forces or essential capital expenditures necessary to sustain long-term growth.вЂќДЄt a time when most investors are clamoring - and applauding - high dividends and bigger buybacks, Mr.

вЂњThe effects of the short-termist phenomenon are troubling both to those seeking to save for long-term goals such as retirement and for our broader economy,вЂќ Mr.

Laurence d fink