US President Trump on Truth Social says will no longer tolerate defence contractors to issue massive dividends to their shareholders and massive stock buybacks, at the expense and detriment of investing in plants and equipment.

Trump’s statements signal a potential shift in policy regarding defense contractors, focusing on their investment practices versus shareholder returns.

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US President Trump on Truth Social says will no longer tolerate defence contractors to issue massive dividends to their shareholders and massive stock buybacks, at the expense and detriment of investing in plants and equipment.

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Full post: All United State Defense Contractors, and the Defense Industry as a whole, BEWARE: While we make the best Military Equipment in the World (No other Country is even close!), 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! Also, Executive Pay Packages in the Defense Industry are exorbitant and unjustifiable given how slowly these Companies are delivering vital Equipment to our Military, and our Allies. Salaries, Stock Options, and every other form of Compensation are far too high for these Executives. Defense Companies are not producing our Great Military Equipment rapidly enough and, once produced, not maintaining it properly or quickly. From this moment forward, these Executives must build NEW and MODERN Production Plants, both for delivering and maintaining this important Equipment, and for building the latest Models of future Military Equipment. Until they do so, no Executive should be allowed to make in excess of $5 Million Dollars which, as high as it sounds, is a mere fraction of what they are making now. Additionally, the maintenance and repair of Equipment, once sold, is far too slow, and must be immediately enhanced. As President, I am demanding that maintenance be “spot on, on time.” Therefore, I will not permit Dividends or Stock Buybacks for Defense Companies until such time as these problems are rectified — Likewise, for Salaries and Executive Compensation. MILITARY EQUIPMENT IS NOT BEING MADE FAST ENOUGH! It must be built now with the Dividends, Stock Buybacks, and Over Compensation of Executives, rather than borrowing from Financial Institutions, or getting the money from your Government. Longer term, this is good for both Executives and Shareholders, because it will be GREAT for our Country! Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN! DONALD J. TRUMP PRESIDENT OF THE UNITED STATES OF AMERICA

Context

This could create uncertainty for equities in the defense sector and may lead to increased scrutiny of corporate governance and compensation practices. Traders should also monitor any subsequent market reactions in defense stocks, as well as potential implications for broader fiscal policies and military spending.

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