President says shareholder payouts and executive compensation will be restricted unless military production and repair capacity accelerate.
By yourNEWS Media Newsroom
President Donald Trump on Wednesday said his administration would move to block stock dividends, share buybacks, and certain executive compensation practices at U.S. defense contractors until the industry significantly increases production and improves repair timelines for military equipment.
In a statement posted on Truth Social, Trump warned defense firms that current financial practices were undermining national security. He said contractors were directing “massive dividends” and “massive stock buybacks” to shareholders instead of investing in manufacturing capacity, facilities, and equipment needed to meet military demand. Trump wrote that this approach was no longer acceptable and would not be tolerated, according to his post.
Trump said dividends and stock buybacks would not be permitted for defense companies until production shortfalls were corrected, adding that the same restrictions would apply to salaries and executive compensation. He argued that military equipment was not being produced quickly enough and should be financed by reinvesting corporate profits rather than relying on borrowing or additional government funding.
The president also suggested placing a temporary cap of $5 million per year on executive pay at defense contractors until the companies addressed what he described as systemic production and maintenance failures. Trump said redirecting funds from shareholder payouts and executive compensation toward manufacturing would ultimately benefit both the companies and the country.
Defense contractors play a central role in supplying weapons systems, vehicles, and maintenance services to the U.S. military. Trump’s comments signal a more interventionist stance toward the defense industry, tying corporate financial practices directly to production performance and national defense readiness.
Original article
Comments