White House is said to weigh dividend limits on defense contractors
The Trump administration is drafting an executive order to penalize defense contractors for failing to meet budget and scheduling requirements. The order would limit executive compensation, stock buybacks, and dividend payouts for companies tied to delayed or over-budget military projects. This move reflects Pentagon frustration with the defense industry and aims to shift towards a more agile production model. The news has impacted financial markets, with shares of Northrop Grumman and Lockheed Martin dropping. Industry groups argue that government red tape is the main issue, not corporate payouts.