U.S. President Donald Trump has issued a public warning to American defence contractors, accusing parts of the industry of prioritising shareholder returns over military readiness and signalling potential restrictions on dividends, share buybacks and executive pay unless production and maintenance improve.
In a series of posts published on Truth Social and X, Trump said defence companies were issuing “massive dividends” and conducting large stock buybacks “at the expense and detriment of investing in plants and equipment”, despite what he described as slow delivery of vital equipment to U.S. forces and allies. He argued that executive compensation across the sector was “exorbitant and unjustifiable” given performance shortfalls.
Trump said defence firms would be expected to invest in new and modern production facilities for both manufacturing and maintenance, warning that until those issues were addressed, executives should not be permitted to earn more than $5 million annually. He added that maintenance and repair of equipment already in service was “far too slow” and demanded that it be improved immediately.
In a separate post, Trump singled out Raytheon, claiming it had been among the least responsive contractors to Department of War requirements and the slowest to increase production volumes. He accused the company of aggressive shareholder payouts rather than meeting military needs, warning that unless it increased upfront investment in plants and equipment, it risked losing future business with the U.S. government. Trump also said Raytheon would not be permitted to conduct further stock buybacks if it sought continued government contracts.
