Trump says he will crack down on defense firms' executive pay and buybacks

President Trump posted that he will bar dividends and stock buybacks and cap executive pay at $5m for defense contractors until deliveries speed up; he did not set out a legislative plan.

President Donald Trump announced plans to limit executive pay and shareholder payouts at US defense contractors, saying firms have been slow to deliver equipment. He made the comments in a post on Truth Social and described executive salaries and stock buybacks as excessive. Mr. Trump said dividends and buybacks would not be permitted and that executives could not be paid more than $5 million until deliveries accelerate. He did not present a legislative plan for those measures. Key points: - The president accused defense companies of failing to deliver "vital" equipment and criticised large executive pay packages and shareholder payouts. - He said he would bar dividends and stock buybacks for defense firms and cap executive pay at $5 million until production and deliveries improve, but offered no legislative plan. - The article notes fiscal 2024 CEO compensation figures for several major contractors were above $18m, and some companies did not immediately comment or declined to comment. Summary: The announcement focuses attention on compensation and payout practices in the defence sector while the administration has increased military spending. Undetermined at this time.