Trump says he plans crackdown on defense firms over executive pay and stock buybacks

The Guardian - World NewsCenter-LeftEN 3 min read 100% complete by Michael SainatoJanuary 7, 2026 at 10:51 PM

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Donald Trump announced plans to crack down on defense contractors, citing slow equipment delivery and excessive executive compensation. He stated on social media that he intends to increase the military budget to $1.5 trillion while criticizing defense firms for prioritizing shareholder dividends, stock buybacks, and high executive pay over investing in production. Trump said he would not permit dividends, buybacks, or executive pay exceeding $5 million until companies accelerate deliveries and modernize plants. This announcement follows a period of increased military spending under Trump, with the 2024 CEO compensations for Lockheed Martin, General Dynamics, RTX, and Northrop Grumman ranging from $18 million to over $24 million. Trump aims to build what he calls a "Dream Military".

Key Entities & Roles

Key Player Opposition Context

Greenland 30% Venezuela 40% Nicolás Maduro 40% Northrop Grumman ×270% RTX ×270% Lockheed Martin ×270% General Dynamics ×270% United States ×380% Donald Trump ×790%

Keywords

defense contractors 100% executive compensation 90% stock buybacks 80% military spending 70% defense industry 60% shareholder payouts 60% donald trump 50% military equipment 50% dividends 40%