A way of conducting a
management buyback in which a
stockholder maintains the same percentage of
ownership in the company that he/she had before the buyback. A management buyback is the act of a company buying its own
shares to reduce the number of
shares outstanding; a proportionate redemption exists in order to protect stockholders from the
risk of
loss in the buyback. For example, if a stockholder owned 4% of the company before the buyback, the company will structure the buyback such that he/she continues to own 4% after the buyback.