Board members of Nike have decided to buy its own shares over the period of four years. The company will be spending $8 billion for buying the shares. Past 10 years, Nike has been using its buyback plan to pay to its board members.

The plan has helped the company is getting good cash. It is once again going to use the same strategy for increasing its bank balance. The Chief Executive, Mark Parker said, “Over the past 10 years, Nike has returned $10 billion to shareholders through the repurchase of more than 167 million shares”.

At present, the market value Nike is $44 billion. Nike is not the only company that is opting for buyback plane, CVS Caremark has also announced a buyback plan of $6 billion. Just like Nike, CVS Caremark is also hoping of getting good revenue by this scheme.

The board members of both the companies will definitely be benefited by the plans. Nike is a very popular brand of sports equipments. Through the buyback plan, Nike will be able to get good cash flow. The CVS Caremark will also experience the same benefits from the buyback plans. Nike will be going ahead with its buyback plans in 2013.