Washington DC, January 8 (ANI): US President Donald Trump on Wednesday issued a strong warning to American defence contractors, directing them to reinvest profits into new manufacturing plants, modern equipment, and faster delivery of military hardware, while sharply curbing executive compensation and shareholder payouts.
In a social media post, Trump criticised defence companies for issuing what he described as “massive dividends” and conducting large stock buybacks at the expense of infrastructure investment and production capacity. He said these practices have contributed to unacceptable delays in delivering critical equipment to the US military and its allies, as well as slow maintenance and repair of supplied systems.
“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,” Trump said.
He also took aim at executive compensation in the defence industry, calling pay packages “exorbitant and unjustifiable” given the slow pace of equipment delivery.
“Salaries, Stock Options, and every other form of Compensation are far too high for these Executives,” he added.
Pay Cap and Investment Mandate
Trump announced that, going forward, no defence industry executive would be allowed to earn more than $5 million annually, including salary, stock options, and all other forms of compensation.
He further stated that defence companies would be barred from issuing dividends or conducting stock buybacks until they demonstrate measurable improvements in production speed, maintenance quality, and long-term investment in manufacturing infrastructure.
The President directed defence firms to prioritise the construction of new and modern production facilities and to strengthen capabilities for maintaining existing military equipment.
Housing Policy Announcement
Separately, Trump addressed housing affordability, saying the American Dream of home ownership has become increasingly out of reach due to record-high inflation under the previous administration.
He announced immediate steps to ban large institutional investors from purchasing additional single-family homes, arguing that such practices have driven up housing prices.
“People live in homes, not corporations,” Trump said, adding that he would urge Congress to codify the measure into law.
Trump also said he would outline additional housing and affordability proposals during his upcoming speech at the World Economic Forum in Davos later this month. (ANI)
371 words, 2 minutes read time.
About The Author
