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Trump Threatens Dividend, Buyback Ban and $5 Million Pay Cap for Defense Contractors

He issued the warning in a TRUTH Social post rather than through a formal policy move.

Overview

  • The president said he would block defense firms from paying dividends and conducting share buybacks until production and maintenance delays are resolved.
  • He argued that military equipment is being produced too slowly and serviced too slowly.
  • Trump proposed capping top executives’ compensation at $5 million until companies meet output and servicing goals.
  • He stated, "I will not allow dividends or buybacks until these problems are fixed," underscoring that the measures are a threat rather than an enacted rule.
  • RIA Novosti reported and summarized the TRUTH Social statement, with no additional legal steps or official implementation actions described.