"On Wednesday, Trump signed an executive order outlining new rules for defense contractors that would ban stock buybacks and dividends "until such time as they are able to produce a superior product, on time and on budget" - as well as limit executive compensation. The order stipulates that in future contracts, if the Secretary of War were unsatisfied with a company's performance, executive base salaries would be capped at current levels."
"Future contracts would also ensure compensation "not be tied to short-term financial metrics" and instead be "linked to an on-time delivery, increased production, and all necessary facilitation of investments and operating improvements." The goal, per the executive order, is to increase the speed of innovation at defense companies, rather than focus on corporate profits. Trump also took aim at the leaders of defense contractors in a series of posts on Truth Social on Wednesday."
President Donald Trump signed an executive order imposing new rules on defense contractors, including bans on stock buybacks and dividends until superior, on-time, on-budget products are delivered. The order allows the Secretary of War to cap executive base salaries at current levels if company performance is unsatisfactory. Future contracts will require compensation structures that are not tied to short-term financial metrics but are linked to on-time delivery, increased production, and facilitation of investments and operating improvements. The stated goal is to accelerate innovation and prioritize timely delivery over corporate profits. Trump also proposed a $5 million pay limit on Truth Social.
Read at Business Insider
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