Stock buybacks boost companies’ earnings

NEW YORK » If you’re puzzled why the U.S. stock market has risen so fast in a slow-growing economy, consider the stock buyback.

Companies are increasingly engaged in massive stock buyback programs, which reduce the number of its shares in circulation by purchasing them from investors. Spreading earnings over fewer shares translates into higher earnings per share.

It’s a common practice but is one that has exaggerated the health of many companies. Critics say the obsessive focus on buybacks has led companies to put off replacing plant and equipment, funding research and development, and generally doing the kind of spending needed to produce long-term profits.

Men’s Wearhouse acquires Jos. A. Bank

NEW YORK » It looks like the best suitor won.

Men’s Wearhouse Inc. said Tuesday that it’s buying rival Jos. A. Bank Clothiers Inc. for $1.8 billion to create the nation’s fourth-largest menswear retail chain. The acquisition comes after months of the two chains publicly fighting over who would acquire whom.

The company will pay $65 a share, a 5 percent premium to Jos. A. Bank’s Monday closing price of $61.83. Jos. A. Bank also said it’s terminating its deal to acquire the parent company of Eddie Bauer, which sells rugged outerwear.

Job postings edged up 1.5% in January

WASHINGTON » U.S. employers advertised slightly more jobs in January than in December, a sign that hiring should remain steady in coming months.

The Labor Department said Tuesday that employers posted 3.9 million job openings, up 1.5 percent from December. That is still below November’s nearly six-year high of 4.1 million, the first month that openings topped 4 million since March 2008.

There are about 2.6 unemployed Americans, on average, for each open job, the report shows.

That’s close to the ratio of 2-to-1 that is typical of healthier economies.

Clarify 401(k) fees, officials tell firms

WASHINGTON » The Labor Department wants financial services companies that administer 401(k) retirement plans to do a better job explaining just what fees and expenses are attached to those plans.

The rule would update one from 2012. Officials say many disclosure forms offered since then have become too lengthy, complex and confusing.

The department says employers who offer such plans need a better "road map" of embedded charges and fees.

ON THE MOVE

SimplicityHR by Altres, an outsourced payroll and human resources service, has promoted Kimberly Horan to client relationship manager. She joined the company in 2008 as a human resources consultant and has 17 years of sales and account management experience.

Central Pacific Bank has promoted Garrett Grace to senior vice president and corporate banking division manager. He has been with CPB since 2001 and has 20 years of banking experience. Grace previously served as a senior vice president and senior commercial banking manager.