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Donald Trump: Defense contractors should not pay dividends or repurchase shares; executive annual compensation must not exceed $5 million
U.S. President Donald Trump posted on social media: “U.S. defense contractors are currently paying out massive dividends to shareholders and engaging in massive stock buybacks at the expense of investments in factories and equipment.This situation must never again be allowed or tolerated! Furthermore, given how slowly these companies are delivering critical equipment to our military and allies, the compensation packages for defense industry executives are excessive and unreasonable.From now on, these executives must build brand-new, modern production facilities to deliver and maintain this vital equipment, as well as to produce the latest models of military equipment for the future. Until they resolve this issue, no executive’s annual salary should exceed $5 million. Furthermore, the pace of maintenance and repair for equipment sold is too slow and must be improved immediately.Until these issues are resolved, I will not allow defense companies to pay dividends or conduct stock buybacks; the same applies to salaries and executive compensation. Dividends, stock buybacks, and excess executive compensation must be used to build military equipment, rather than borrowing from financial institutions or obtaining funds from the government.”
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