I was at an asset management conference this week and part of it studied how companies were deploying the tax savings they received under the new tax plan. You’re probably thinking they’re using the money to invest in R&D, increase employee wages, and pass discounts on to customers, right? Yeah, not so much.
As disappointing as it is predictable, the lion’s share of the money (57%) is going to stock buybacks and debt retirement, which only benefit shareholders. The amount going to employees? About 6%.