As the United States marks its 250th anniversary, new research from Oxfam and PolicyLink examines the legacy of the racial wealth gap in the US and how stock buybacks and concentrated stock ownership deepen inequality—and what policymakers and business leaders can do to shape a different future.
Oxfam and PolicyLink released a new analysis today, “The Buyback Divide: How Stock Buybacks Distort Markets and Deepen Wealth Inequality,” examining how stock buybacks and shareholder primacy influence wealth inequality in the United States, particularly their role in widening the racial wealth gap. The joint research highlights how disparities in corporate equity ownership have grown significantly in recent decades, now accounting for more than one-third of the racial wealth gap, up from 14% in 1989.
The report comes at a time when stock buybacks have reached unprecedented levels. In 2025 alone, S&P 500 companies spent over a trillion dollars repurchasing their own shares. Importantly, these buybacks take place in a highly stratified system of wealth and corporate equity ownership, compounding existing inequalities, especially along racial lines. White households own 92.1% of corporate equity and mutual fund value, compared to just 1.5% held by Black households and 1.9% held by Hispanic households. As a result, stock buybacks concentrate wealth among already wealthy, predominantly White households. Per the most recent available data, in 2022, White households held $285,000 in median wealth, compared with $44,900 for Black households and $61,600 for Hispanic households.
“An economy that concentrates gains among too few people ultimately leaves all of us worse off, and the racial wealth gap offers one of the clearest windows into the broader story of wealth inequality in America,” said Mahlet Getachew, PolicyLink’s corporate program managing director. “This report helps us understand how the current rules and incentives that shape our economy concentrate opportunity and wealth. Reforming those rules can help build a stronger, more resilient economy that works better for workers, businesses, investors, and communities alike.”
The report also finds that disparities in corporate equity ownership have become one of the fastest-growing drivers of the racial wealth gap. Between Q4 1996 and Q2 2025, White households gained an estimated $9 trillion in wealth from stock buybacks through corporate equity ownership, compared to $104 billion for Black households and $94 billion for Hispanic households.
"Stock buybacks are often treated as a technical corporate finance issue, but their effects extend far beyond the balance sheet," said Irit Tamir, Oxfam America’s senior director of corporate accountability and worker justice. “This research is not just about who benefits from buybacks — disproportionately wealthy, White households — but also the opportunities companies miss by funneling so much of their profits into share repurchases. Those resources could also go toward supporting the workers who create much of that value, or investing in innovation. It’s up to legislators, regulators, and corporate leaders alike to address this harmful dynamic by curbing the unfettered use of stock buybacks.”
To address the governance, market, and wealth concentration challenges identified in the report, Oxfam and PolicyLink propose several reforms to stock buyback regulation, corporate governance, and capital allocation practices in the U.S.:
- Legislative reforms: Congress can strengthen oversight of buybacks; limit buybacks outright; reduce incentives for executives to benefit personally from buyback-driven share price increases; and encourage more productive uses of corporate capital.
- Regulatory reforms: The SEC could pursue more meaningful limitations of buybacks by repealing or reforming Rule 10b-18; setting bright line limits on repurchase volumes based on robust empirical analysis; placing restrictions on trading by corporate insiders during buyback periods; and requiring real-time buyback disclosures.
- Business leadership: Companies do not need to wait for regulatory action. They can strengthen their governance and capital allocation practices by adopting formal capital distribution policies; setting guardrails for stock buybacks; investing in workers and broad-based wealth building; and aligning executive compensation with long-term value creation. The Corporate Racial Equity Alliance’s Business Standards for 21st Century Leadership provide a practical roadmap for these reforms. Oxfam’s Corporate Inequality Framework also highlights common ways in which companies drive inequality more broadly.
PolicyLink is a national research and action institute working to advance a United States that truly governs for all. We develop practical, structural solutions that help government, business, and capital markets better serve people and communities, with the goal of building a democracy and economy where all can thrive. Explore ideas and solutions for the next 250 years: policylink.org.
Oxfam is a global organization that fights inequality to end poverty and injustice. We offer lifesaving support in times of crisis and advocate for economic justice, gender equality, and climate action. We demand equal rights and equal treatment so that everyone can thrive, not just survive. The future is equal. Join us at oxfamamerica.org.
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Notes to editors:
Download the full report, “The Buyback Divide: How Stock Buybacks Distort Markets and Deepen Wealth Inequality.”