'Stock manipulation is cool, especially when you change executives pay structure to be based purely on said manipulation. Totally creates healthy incentives not perverse ones.'
It's not just a way for a company to use their money. It is a company intentionally using funds for stock manipulation, many times by executives who directly benefit from said manipulation. Companies even take out loans purely to re-purchase stock.
And shareholders only 'benefit' from this return if they sell their stock (ie give up being stock holders) versus the traditional method where stock holders receive and dividend and maintain their stock ownership. A dividend benefits all stock holdres, stock manipulation only benefits those that sell, a smaller arbitrary subset. Why chose a 'return' method that is only for some investors?
>Why chose a 'return' method that is only for some investors?
The investors control the company, so they get to decide that.