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Ebix $100M buyback, CEO takes salary in stock +2

10:58 12-Dec-18


Ebix has announced that its CEO will take salary in stock, and that it is adding $100M to its buyback plan.  As with the Indian central bank moves and associated drop in the rupee, I see this as double-edged, but a net positive.  The $6M in annual dilution from CEO pay is trivial, and more than offset by the corporate repurchases.  However, buybacks will impair the company's ability to reduce its debt, though recent interest rate developments have been favorable.  Of course, buybacks will boost earnings figures as well.  Supposedly, the stock for salary situation will continue until EBIX share price reaches $150 (pre-split).  I don't call them Get-Rich-or-Die-Trying stocks for nothing, but Ebix's established business offers a little more security than most.