Trump bars defence company payouts until weapons production speeds up

ଆନ୍ତର୍ଜାତୀୟ

ତୀବ୍ର ଗରମ ଓ ମଧ୍ୟପ୍ରାଚ୍ୟ ସମସ୍ୟା ମଧ୍ୟରେ ଆରମ୍ଭ ହେଲା...

May 25, 2026

ଇରାନ୍‌ ଚୁକ୍ତିକୁ ନେଇ ଟ୍ରମ୍ପଙ୍କ ପରିବର୍ତ୍ତନଶୀଳ ବୟାନ; ବଜାରରେ ବଢ଼ୁଛି...

May 25, 2026

‘ଖରାପ ଚୁକ୍ତି କରିବୁ ନାହିଁ’: ତେହରାନ ସହ ଆଲୋଚନାକୁ ନେଇ...

May 25, 2026

ଇଣ୍ଡୋନେସିଆର ମାଉଣ୍ଟ ଡୁକୋନୋ ଜ୍ୱାଳାମୁଖୀ ବିସ୍ଫୋରଣ, ୩ ପର୍ବତାରୋହୀଙ୍କ ମୃତ୍ୟୁ

May 09, 2026

ଅପରାଧ

ବ୍ରହ୍ମଗିରିରେ ପୂର୍ବ ଶତ୍ରୁତାକୁ ନେଇ ଯୁବକଙ୍କୁ ହତ୍ୟା ଅଭିଯୋଗ; କାଜୁ...

May 25, 2026

ବ୍ରହ୍ମପୁରରେ ଯୁବକଙ୍କୁ ଆକ୍ରମଣ: ଭାଇରାଲ ଭିଡିଓର ୫ ଘଣ୍ଟା ମଧ୍ୟରେ...

May 25, 2026

ବାଲିହନ୍ତା GRP କନଷ୍ଟେବଳ ମୃତ୍ୟୁ ମାମଲାରେ ୧୧ ଗିରଫ, ସାଙ୍ଗ...

May 09, 2026

ଭୁବନେଶ୍ୱରରେ ନିଶା କାରବାରକୁ କେନ୍ଦ୍ର କରି ଖଣ୍ଡା ଆକ୍ରମଣ, ୪...

May 09, 2026

Trump bars defence company payouts until weapons production speeds up

US President Donald Trump has announced that American defence contractors will be barred from paying dividends or buying back shares until they significantly accelerate weapons production and improve maintenance standards. The move signals a sharp shift in US defence policy, prioritising military readiness over shareholder returns.

Published by Priti | January 08, 2026

In a post on Truth Social on Wednesday, Trump criticised the defence industry for failing to deliver equipment at the pace required by modern warfare. He said financial rewards for shareholders would now be tied directly to production performance on the ground.

“Defence Companies are not producing our Great Military Equipment rapidly enough and, once produced, not maintaining it properly or quickly,” Trump wrote, making clear that dividends and share buybacks would remain off the table until output improves.

Trump and senior officials at the United States Department of Defense have repeatedly argued that long delays, cost overruns and poor maintenance weaken US military readiness and erode taxpayer confidence.

Markets rattled, details unclear

The announcement unsettled defence stocks, reversing gains seen earlier in the week. However, Trump did not provide details on how the restrictions would be enforced or the legal framework under which they would operate, adding to market uncertainty.

The earlier rally in defence stocks had followed the high-profile US military operation that led to the capture of Venezuelan President Nicolas Maduro, which briefly boosted investor confidence in US defence contractors.

Executive pay also targeted

Beyond shareholder payouts, Trump also took aim at executive compensation across the defence sector, calling current pay packages “exorbitant and unjustifiable.” He said executive salaries should be capped at $5 million — far below what many top defence executives currently earn.

“From this moment forward, these Executives must build new and modern production plants, both for delivering and maintaining this important equipment, and for building the latest models of future military equipment,” Trump wrote, without naming specific companies.

Impact on major defence firms

According to Reuters, dividends and share buybacks are widespread across the US defence industry and are a key tool used to attract investors.

For instance, Lockheed Martin raised its dividend for the 23rd consecutive year in October, increasing it to $3.45 per share. The company has also authorised up to $9.1 billion in share buybacks, including a $2 billion expansion approved last year.

Delays in flagship defence projects

Trump’s comments come amid persistent delays and cost overruns in major US defence programmes. Lockheed Martin’s F-35 fighter jet — one of the most expensive weapons systems ever developed — has faced repeated production setbacks and rising costs.

Similarly, the $140 billion Sentinel intercontinental ballistic missile programme, designed to replace ageing Minuteman III missiles and managed by Northrop Grumman, is expected to be years behind schedule and nearly 81% over budget, according to the US military.

Bigger policy signal

Trump’s stance marks a break from long-standing Wall Street norms, sending a strong message to the military-industrial sector: faster production, tighter cost control and improved readiness must come before shareholder rewards. While enforcement details remain unclear, the announcement underscores the administration’s growing impatience with delays in strengthening US defence capabilities.