Trump Bans Defense Firms from Stock Buybacks

President Donald Trump signed an executive order on Wednesday to block defense companies from paying dividends or buying back stock until they improve production and delivery performance.

"Effective immediately, they are not permitted in any way, shape, or form to pay dividends or buy back stock, until such time as they are able to produce a superior product, on time and on budget," the order reads.

Trump and the Pentagon have criticized the defense industry for what they describe as high costs and slow production. The administration has vowed to make changes to boost production of military equipment.

"I am committed to ensuring that the United States military possesses the most lethal warfighting capabilities in the world," the order reads. "Our Nation can only be at peace if we maintain strength. The performance of America’s defense industrial base is critical to this capacity. After years of misplaced priorities, traditional defense contractors have been incentivized to prioritize investor returns over the Nation’s warfighters."

"While the United States produces the best military equipment in the world, we do not make enough of it quickly enough to meet the needs of our military and our partners," it added. "As a result, in these dangerous times, it is imperative that our defense contractors be held to the highest standards intended to ensure the advancement of core national interests, including with respect to the timeliness and quality of the defense items that they deliver."

"I have been informed by the Department of War that Defense Contractor, Raytheon, has been the least responsive to the needs of the Department of War," he wrote.