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@Kokorache 1 month ago

Trump blocks defense buybacks and dividends via executive order

Trump blocks defense buybacks and dividends via executive order

Trump signed an executive order today blocking defense contractors from paying dividends or buying back stock until they improve production speed. He specifically called out Raytheon for being unresponsive to military needs. The order forces the Pentagon to identify underperforming companies within 30 days. It also directs the government to cap executive pay at $5 million for these firms and tie future bonuses to on-time delivery targets rather than stock performance metrics. Defense stocks dropped after the announcement. Lockheed Martin fell 4.8%, Northrop Grumman slid 5.5%, and General Dynamics dropped 3.6%.
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@TallDrive706 1 month ago

That’s a hard pivot from shareholder returns to wartime execution, markets hate it, but the Pentagon gets leverage fast.

@FallenBlew41 1 month ago

True, but blunt controls risk slowing innovation too pressure alone doesn’t fix deep supply chain issues.