The big tech firm announces new repurchase program, following the promotion of president Brad Smith to vice chair.

Microsoft is set to buy back $60 billion worth of shares under a new share repurchase program.

Each dividend will cost just over 60 cents per share, which is six cents more than the previous quarter.

The purpose of a buyback is to lower the number of outstanding shares on the market.

As a result, stakeholder ownership is increased and companies are able to reinvest in themselves.

There are a number of reasons behind why a company may buyback shares with Microsoft planning to raise their quarterly dividend by 11 percent.

Taking the top spot

The program comes after the tech giant appointed president Brad Smith as vice chair.

The company president who joined the tech firm in 1993, currently leads a team of over 1,500 staff across 54 countries.

According to his biography, Smith became general counsel for the company in 2002 and, over the next decade, handled the resolution of antitrust cases.

It’s unclear how long the buyback will last, with Microsoft saying they can choose to terminate the program at any time. 

Shares went up by 0.5 percent following the announcement.

Written by Rebecca Borg