US EditionTrump Lambastes Defense CEOs over Pay, Stock Buybacks
Trump limits defense CEOs' pay to $5 million and bans dividends until production and maintenance improve, aiming to boost military readiness with new plants, stocks fluctuated sharply.
- On Wednesday, President Donald Trump signed an executive order regulating U.S. defense contractors that bans dividends and stock buybacks until firms produce on time and on budget.
- Trump criticized defense contractors for slow production and maintenance, saying repair was `far too slow` and urging immediate improvement while they paid shareholders.
- Trump proposed capping CEO pay at $5 million, citing 'Executive Pay Packages in the Defense Industry are exorbitant and unjustifiable,' as leaders earned over $18 million in 2024.
- Shares of Lockheed Martin rose 4.6% after dropping 4.8% the day earlier, and RTX rose 0.7% after falling 2.5% as Trump’s $1.5 trillion defense budget boosted stocks on Thursday.
- The order directs building new and modern production plants, and future contracts will link pay to on-time delivery and increased production to ensure innovation focus.
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Why AeroVironment Stock Is Soaring Higher This Week
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Trump wants to cap defense CEO pay. Here's how much they make now.
Donald Trump signed an executive order on Wednesday regulating defense contractors, including their executive pay.Anna Moneymaker/Getty Images; Taylor Hill/WireImagePresident Donald Trump took aim at defense contractors on Wednesday in an executive order.In a post on Truth Social, he proposed capping the compensation of defense contractor CEOs at $5 million.That figure is a fraction of the current pay for leaders of the largest defense contracto…
HII 'going down right path' amid Trump's warnings to defense industry, CEO says
On the heels of a warning from President Trump for the defense industry to “beware” along with an executive order issued Wednesday night that outlines the proposed restriction of stock buybacks and shareholder distributions for contractor underperformance, a major shipbuilding CEO says his company is "going down the right path" when it comes to investing and meeting contract commitments. “I don't see it as different than what we've already been …
How Trump shook up U.S. defence stocks this week
U.S. President Donald Trump caused some commotion for investors in U.S. defence contractors this week. First, Trump criticized the companies for taking too long to produce military equipment and also failing to maintain it while at the same time paying out billions in dividends and stock buybacks to investors. But then the president proposed a US$1.5 trillion defence budget for 2027, a big jump from the US$901 billion provisioned for 2026.
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