"President Donald Trump called out Raytheon by name as he continues to seek to make an example out of the nation's largest defense contractors. "I have been informed by the Department of War that Defense Contractor, Raytheon, has been the least responsive to the needs of the Department of War, the slowest in increasing their volume, and the most aggressive spending on their Shareholders rather than the needs and demands of the United States Military," Trump wrote in a Truth Social post published on Wednesday."
"Earlier in the day, Trump fired a broadside at the entire defense industry, posting on Truth Social that he would "not permit" further stock buybacks or dividends to be issued to shareholders. Trump also said that until defense companies build "NEW and MODERN Production Plants" their executives' pay should be capped at $5 million. It's unclear why Trump singled out Raytheon in particular. The company has a history of returning capital to shareholders. Raytheon announced a $10 billion buyback plan in 2023 and says it has paid a dividend every year since 1936."
President Donald Trump accused Raytheon of being the least responsive to Department of War needs, slowest to increase production, and most aggressive in spending on shareholders instead of military requirements. He posted the criticism on Truth Social and escalated broader demands on the defense industry, proposing a ban on stock buybacks and dividends and capping executives' pay at $5 million until companies build new production plants. RTX Corporation did not immediately comment. Raytheon has pursued large buybacks, including a $10 billion plan in 2023, and has paid an annual dividend since 1936. The legal authority to block corporate payouts remains unclear.
Read at Business Insider
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