Defense firms seek legal advice after Trump's clampdown on payouts

Defense contractors are seeking legal advice after President Trump signed an executive order tying share buybacks, dividends and executive pay to weapons delivery schedules; the order requires the Secretary of War to identify non-compliant contractors within 30 days, with identified firms given 15 days to submit remediation plans.

President Donald Trump signed an executive order entitled "Prioritizing the Warfighter in Defense Contracting" that ties share buybacks, dividends and executive incentive pay to weapons delivery schedules. The Reuters report says defense contractors have been seeking legal advice about the order and its enforceability. The White House described the move as prioritizing military readiness. Officials set a timetable for enforcement under the order. Known details: - The order links capital returns and executive pay rules to on-time weapons deliveries, according to the article. - The report says many defense firms have contacted legal counsel to discuss enforceability and potential court challenges. - Enforcement provisions require the Secretary of War to identify contractors who violate the rules within 30 days; those companies would have 15 days to submit board-approved remediation plans. Summary: The executive order has prompted legal scrutiny within the defense industry and raised questions about how enforceable the measures will be. The administration has set specific procedural deadlines for identifying and responding to alleged non-compliance, and further legal or administrative outcomes are undetermined at this time.