Biden targets executives with new stock buyback proposal

President Joe Biden called in his new budget plan for legislation to place a three-year freeze on executives selling their shares after a stock buyback, a measure meant to target what Democrats have derided as corporate short-term thinking and greed.

The draft budget, which was released on Monday, re-ups a previous White House proposal to tax stock buybacks at 1% but goes further in placing the time limits on sales by executives. The plan was structured as such to prevent executives from making a quick profit off the higher-priced company shares immediately after a buyback.