Use Case · For the CFO
Most public companies spend a significant portion of their buyback budget just to offset the dilution their equity compensation programs create. Carver Edison is designed to eliminate dilution at the source - so every dollar of buybacks can create real EPS accretion rather than running in place.
The Problem
Your buyback program and your equity comp program are working against each other. One issues shares. The other buys them back. The net result: billions spent with no accretion to show for it.
Every ESPP and equity grant cycle, traditional programs issue new shares into the float. These shares dilute existing holders and expand the denominator in EPS. The buyback exists, in large part, to absorb that issuance and keep the share count from growing.
Industry data suggests that roughly 70% of buyback spending at major public companies offsets dilution from equity compensation rather than reducing the actual share count. You're spending capital to stand still.
When buyback capital isn't neutralized by comp plan dilution, it actually shrinks the share count - which lifts EPS, signals confidence to the market, and returns value to shareholders. Right now, most of yours is doing none of that.
The Mechanism
Traditional equity comp programs create a treadmill: issue shares, dilute shareholders, buy back shares to offset. Carver Edison breaks the cycle by sourcing shares from the open market rather than issuing new ones. Your comp plan is designed to deliver the same benefit - without adding anything back to the float for your buyback to absorb.
Traditional ESPP + Buyback
Cashless Participation® + Buyback
The Outcome
With comp-plan dilution reduced at the source, the buyback dollars that were offsetting it are designed to do accretive work, retiring shares, funding M&A, or returning capital, rather than running in place.
Illustrative example
For a company spending $100M annually on buybacks to offset equity plan dilution.
Today
With Carver Edison
Methodology: Industry data suggests roughly 70% of large-cap buyback capital is consumed offsetting equity plan dilution. Eliminating 85% of plan dilution at the source frees those buyback dollars for genuine share retirement, M&A, or distributions. 3-year capital freed = ($85M + $89.25M + $93.71M) = $267.96M.
Outcomes are not guaranteed and vary based on company-specific factors and market conditions.
Related Outcomes
Designed to dramatically reduce dilution on your share pool by sourcing shares from the open market.
See use case → 01.Designed to decrease stock-based compensation by as much as 85% on the same grants.
See use case → 03.Lower SBC can lift net income. Fewer shares shrink the denominator. Structured so EPS improves from both ends.
See use case →We'll model the dilution your equity programs are creating and show you exactly what your buyback could accomplish if it wasn't running in place.