Stock Repurchase Program
A board-authorized plan allowing a company to systematically buy back its own shares over time.
What is Stock Repurchase Program?
A stock repurchase program (also called a share buyback program or buyback authorization) is a formal plan approved by a company's board of directors to repurchase a specified maximum dollar amount or number of its own outstanding shares from the open market, through tender offers, or via accelerated share repurchase agreements. The board authorization does not obligate the company to repurchase the full amount; management executes purchases at its discretion based on market conditions, cash availability, and valuation. Repurchases reduce the total share count outstanding, boosting earnings per share (EPS) and return on equity (ROE) for remaining shareholders. Unused authorization expires or is superseded by new board approvals, and companies are required to disclose buyback activity quarterly in SEC filings.
Example
In May 2023, Apple Inc.'s board authorized a new $90 billion share repurchase program, one of the largest single buyback authorizations in corporate history. Over fiscal year 2023, Apple repurchased approximately $76.6 billion of its common stock—entirely through open market purchases—under this and prior programs, continuing a decade-long pattern of returning excess capital to shareholders that has reduced Apple's diluted share count by over 40% since 2012.
Source: Apple Inc. 10-K FY2023