Pershing Square Activist Presentation Deck
Flawed Capital Allocation Framework:
Share Buybacks
► Capital return program is not designed to create shareholder value
■ Allergan's buyback program aims only to offset the dilution from stock
based compensation - Valuation is not a consideration
■ Did not buy back shares last year when the stock fell to the $80-$90 per
share range and stayed in that range for several months
David Pyott, Allergan Chairman and CEO; Q4 2013 Earnings Call:
"Well, maybe ending with the easiest part. On share repurchase, over a long
period of time, our goal has been to hold the share count roughly flat. We'll go
up and down at the margin quarter-to-quarter, so the treasury is on the other
side, if you like of the dilution caused by employees appropriately exercising
their stock options."
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