"All United State Defense Contractors, and the Defense Industry as a whole, BEWARE: While we make the best Military Equipment in the World (No other Country is even close!), Defense Contractors are currently issuing massive Dividends to their Shareholders and massive Stock Buybacks, at the expense and detriment of investing in Plants and Equipment. This situation will no longer be allowed or tolerated!"
"Therefore, I will not permit Dividends or Stock Buybacks for Defense Companies until such time as these problems are rectified - Likewise, for Salaries and Executive Compensation. MILITARY EQUIPMENT IS NOT BEING MADE FAST ENOUGH!" he said. The executive order formally says, "Effective immediately, they are not permitted in any way, shape, or form to pay dividends or buy back stock, until such time as they are able to produce a superior product, on time and on budget." "Every firm across our economy has a right to profit from prudent investment and hard work, but the American defense industrial base also has the responsibility to ensure that America's warfighters have the best possible equipment and weapons. These two objectives are not mutually exclusive," the EO says."
An executive order bars defense contractors from paying dividends or repurchasing stock and restricts executive compensation until firms invest in modernizing weapons production facilities. The order states the prohibitions are effective immediately and conditions removal on producing superior products on time and on budget. The order emphasizes the defense industrial base must ensure warfighters receive the best possible equipment while acknowledging firms' right to profit from prudent investment. The directive mandates the Secretary of Defense to review contractor performance within 30 days to identify underperforming firms, failures to invest in capacity, or insufficient prioritization of U.S. government contracts.
Read at Breaking Defense
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