Overview
- In a Wednesday post, the president said he "will not permit" payouts until defense firms speed production and provide more timely repairs.
- He argued shareholder distributions are occurring at the expense of investment in plants and equipment.
- He suggested no executive should earn more than $5 million annually until companies expand production capacity.
- Shares of General Dynamics, Lockheed Martin, and Northrop Grumman fell about 2% following the comments.
- CNBC reported the announcement’s binding force was unclear, and the White House did not immediately provide additional details.