Trump Seeks New Powers to Pressure ‘Underperforming’ Weapons Makers
The New York Times••general
Key Points:
- The Trump administration has issued an executive order aimed at increasing weapons production and ensuring timely delivery to the U.S. military and allies by imposing new restrictions on defense companies.
- The order prohibits stock buybacks and dividend payouts at defense firms that fail to make capital investments or are deemed underperforming, and grants Defense Secretary Pete Hegseth authority to review and potentially cap executive compensation.
- Defense Secretary Hegseth is required to identify companies that meet these criteria within 30 days, with such companies facing salary caps for executives and possible loss of support for international military sales.
- Future military contracts will include provisions linking executive bonuses to improved output and on-time deliveries, signaling a more performance-driven approach in defense procurement.
- This move represents a
