Former President Donald Trump issued statements on Wednesday regarding the defense industry, outlining potential restrictions on financial practices and criticizing executive compensation. These comments were posted on his Truth Social platform.
Proposed Restrictions on Defense Companies
Trump stated his intention to prohibit defense companies from issuing dividends or engaging in stock buybacks. This measure, he indicated, would remain in effect until these firms accelerate the production of military equipment and address his other industry-related concerns.
Criticism of Executive Compensation
In his post, Trump also addressed the compensation packages for defense contractors' executives, labeling them as "exorbitant and unjustifiable."
He further asserted that "Defense Companies are not producing our Great Military Equipment rapidly enough and, once produced, not maintaining it properly or quickly." Trump declared that "no Executive should be allowed to make in excess of $5 Million Dollars" until these companies construct new production plants.
Market Reaction
Following Trump's remarks, the stock prices of several major defense contractors experienced a decline. Shares for General Dynamics, Lockheed Martin, and Northrop Grumman each fell by approximately 3%.