Book

Trillions of dollars. One financial mechanism. A story hiding in plain sight. Share buybacks are often presented as a simple way for corporations to return excess cash to shareholders. But behind those transactions lies a far more consequential story—one involving executive incentives, stock prices, regulation, corporate power, and the distribution of wealth. Since 1982, when U.S. regulations fundamentally changed the treatment of buybacks, American corporations have repurchased trillions of dollars of their own shares. What was once controversial has become a defining feature of modern corporate finance. But where does the money actually go? And what happens when the executives making billion-dollar capital allocation decisions are rewarded through compensation tied to stock performance? The Trillion-Dollar Sleight of Hand follows the money from 1982 through 2024, examining the connections between share repurchases, executive compensation, shareholder value, regulation, and wealth concentration. This is not simply a book about the stock market. It is a closer look at the incentives and structures shaping corporate America—and at the consequences that can extend far beyond the boardroom. Through historical and financial analysis, this research monograph challenges readers to reconsider a practice often described as routine and asks a deeper question: Who really benefits when corporations buy back their own shares? For readers interested in economics, finance, corporate governance, public policy, and inequality, The Trillion-Dollar Sleight of Hand offers a provocative examination of one of the most powerful—and misunderstood—mechanisms in modern American capitalism.