British companies are buying back their shares at a faster rate than even US groups, adopting a practice that has drawn criticism for allegedly detracting from investment and innovation and come under fire from lawmakers in both countries.
FTSE 100 companies made commitments to buy back at least £56.9bn of shares last year, according to investment platform AJ Bell, having pledged to buy back more than £50bn of their shares in both 2023 and 2022.
As a proportion of the market, 44 per cent of large companies in the UK reduced their share count by at least 1 per cent in 2024, pushing it ahead of the US, at 39 per cent, for the first time, according to calculations by fund firm Schroders using MSCI indices.