Buybacks Beat Babies?

Abbott is a major US company producing baby formula. There are suspicions that Abbott has been more focused on shareholder profits than on the health of its baby 'clients' (https://www.theguardian.com/environment/2022/may/20/abbott-baby-formula-shareholder-profits). Abbott have had to recall several batches of baby formula contaminated by bacteria. In one case, formula tainted with cronobacter, was linked to the deaths of 2 infants. There had been calls to replace aging equipment, particularly in its Michigan plant. Between 2019 and 2021, Abbott's net profit soared by 94%. Much of this cash was used to increase shareholder dividends, by over 25%. At this time, the company also announced a stock buyback programme worth $5 bn. Some people think that the 'windfall profits' should have been earmaked for new equipment, generating safer products.