Trump: orders US defense companies to reduce CEO compensation, expedite delivery, and invest in new factories
Trump: In a social media message, US President Donald Trump highlighted key policy initiatives, gave a stern warning to US defense contractors, and revealed plans to prevent big institutional investors from purchasing single-family homes.
Trump warned all US defense contractors and the defense sector overall against what he called excessive CEO remuneration, large stock buybacks, and excessive dividends in a social media post on Wednesday.
He said that these actions were being taken at the price of funding new facilities, cutting-edge machinery, and expedited manufacturing of vital military weapons.
Trump said that American defense firms are not providing the US military and its allies with weaponry quickly enough. He also called the situation intolerable and raised severe concerns about the equipment’s delayed maintenance and repair after delivery.
“At the expense and detriment of investing in plants and equipment, defense contractors are currently issuing massive dividends to their shareholders and massive stock buybacks,” he said in a social media post. We will no longer accept or permit this circumstance! Additionally, considering how slowly these companies are supplying our military and our allies with essential equipment, executive pay packages in the defense industry are outrageous and indefensible. For these executives, salaries, stock options, and all other forms of compensation are too high.
Trump stated that going forward, defense executives should concentrate on constructing new and contemporary production facilities for the manufacture and upkeep of current equipment. He also stated that no executive in the defense sector should be permitted to receive more than $5 million USD per year, including salaries, stock options, and other benefits.
The US president also declared that defense businesses would not be allowed to pay dividends or repurchase shares unless they increased infrastructure investment, maintenance quality, and manufacturing speed.
Trump also spoke separately about the affordability of housing, claiming that the previous administration’s record-high inflation has made it harder to purchase a house, which was once a key component of the American Dream.
He said that he will push Congress to enact legislation prohibiting huge institutional investors from purchasing additional single-family homes.
“I will be calling on Congress to codify it, and I am taking immediate action to prohibit large institutional investors from purchasing more single-family homes,” he said. Homes are where people live, not businesses.
Trump also said that in two weeks, when he gives his address in Davos, he would provide further housing and affordability suggestions.