The real issue is that the companies are issuing so many stock options to top brass, that even when they buy back shares, the amount of shares in circulation keeps growing.

If you consider old school companies in the 1950's, there were no stock options. The CEO got paid a salary as voted for by the board, the number of shares was fixed, and profits after tax were distributed to shareholders as dividends.

Now the CEO gets salary plus share options. The amount of shares in circulation increases as the options are exercised. No dividends are paid, instead that money is used to buy back some shares as the CEO sells. In other words, money that used to go to shareholders as dividends is now diverted to CEO pay.