US President Donald Trump has vowed to crack down on excessive executive pay and stock buybacks at major defense contractors, citing their slow delivery of vital equipment to the military and its allies. In a series of social media posts, Trump criticized the companies for prioritizing shareholder payouts over investing in new production plants.
The president's comments came ahead of a planned $1.5 trillion increase in the military budget, with Trump seeking to accelerate deliveries and modernize the armed forces. He threatened to deny dividends and stock buybacks to defense companies until they complied with his demands, as well as limit executive compensation to $5 million or less.
Industry executives face high salaries, with Lockheed Martin's CEO, General Dynamics' CEO, and Northrop Grumman's CEO receiving over $23 million in total compensation for 2024 alone. Trump argued that these payouts were exorbitant and unjustifiable given the companies' slow delivery of equipment.
Trump singled out Raytheon, a major defense contractor owned by RTX, for its slow response to Pentagon needs and excessive spending on shareholders. He warned the company that if it fails to step up production and investment, it would face severe consequences, including loss of government contracts and revenue.
The president's comments are part of his broader push to increase military spending and reform the defense industry. Trump has signed a record $901 billion budget bill and plans to further boost spending by 2027. His proposals aim to build a "Dream Military" that will keep the US safe and secure, but critics argue that they may compromise on essential reforms.
As tensions with Venezuela escalate and the Trump administration considers expanding its military presence in Greenland, defense experts caution that excessive executive pay and stock buybacks can undermine national security interests.
The president's comments came ahead of a planned $1.5 trillion increase in the military budget, with Trump seeking to accelerate deliveries and modernize the armed forces. He threatened to deny dividends and stock buybacks to defense companies until they complied with his demands, as well as limit executive compensation to $5 million or less.
Industry executives face high salaries, with Lockheed Martin's CEO, General Dynamics' CEO, and Northrop Grumman's CEO receiving over $23 million in total compensation for 2024 alone. Trump argued that these payouts were exorbitant and unjustifiable given the companies' slow delivery of equipment.
Trump singled out Raytheon, a major defense contractor owned by RTX, for its slow response to Pentagon needs and excessive spending on shareholders. He warned the company that if it fails to step up production and investment, it would face severe consequences, including loss of government contracts and revenue.
The president's comments are part of his broader push to increase military spending and reform the defense industry. Trump has signed a record $901 billion budget bill and plans to further boost spending by 2027. His proposals aim to build a "Dream Military" that will keep the US safe and secure, but critics argue that they may compromise on essential reforms.
As tensions with Venezuela escalate and the Trump administration considers expanding its military presence in Greenland, defense experts caution that excessive executive pay and stock buybacks can undermine national security interests.
. i get why he's mad about them prioritizing shareholder payouts over actual production, but $5 million or less for CEOs? that's still kinda steep if you ask me 
. and what's with raytheon getting singled out like that? I guess it's a good thing trump is trying to accelerate deliveries and modernize the armed forces tho 
. we'll see how this all plays out, but i'm keeping an eye on it 
I gotta say, I get why he's cracking down on these defense contractors - slow delivery of equipment is a major red flag, especially when we're talking about our military and allies getting the goods they need ASAP 
. Industry execs are already under pressure to deliver profits, let alone take a hit on their paychecks 
. On the other, you gotta wonder if this is just another example of politicians trying to solve problems with Band-Aids instead of tackling the root issues 
. And let's be real, $1.5 trillion military budget is no joke 
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. If these CEOs are so focused on lining their pockets, how can we trust them to make decisions that benefit the country? It's like they're more interested in getting re-elected than actually making sure we've got a strong military 
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. With all this money being wasted on shareholder payouts and CEO salaries, where's it going to come from if we want to invest in actual defence projects? It just doesn't add up 
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. And what about the impact on the companies themselves? It could lead to some major layoffs or even bankruptcies... that'd be a disaster for national security 
. I think we need to see how this all plays out before we start jumping to conclusions 
, right? I mean, $5 million max is pretty reasonable for those execs 
, not waste time on stock buybacks 
. And what's up with Raytheon's slow response? That's just #NotCool 
. But let's be real, this is all part of his broader plan to boost military spending and modernize the armed forces 