智通财经网·2025-12-17 12:58Core Viewpoint - The White House is planning to issue an executive order that will restrict defense contractors with delayed and over-budget projects from paying dividends, conducting stock buybacks, and issuing executive compensation [1][2] Group 1: Executive Order Details - The proposed order will require defense companies to tie executive compensation more closely to the overall performance of delivering specific weapon systems [2] - The exact wording of the executive order may still change, and it is unclear how the order will enforce any restrictions on defense companies [1][2] Group 2: Industry Context - The Trump administration has long complained about the high costs and slow progress of the defense industry, promising extensive reforms to accelerate the production of weapons and related technologies [2] - Last month, the Secretary of Defense, Lloyd Austin, announced a reform plan for the Pentagon's weapon procurement aimed at speeding up procurement processes and eliminating bureaucratic inefficiencies [2] Group 3: Market Reaction - Defense contractors' stock prices saw a slight decline in pre-market trading, with Lockheed Martin (LMT.US) down 1.5%, L3 Harris Technologies (LHX.US) down 1.4%, Leidos (LDOS.US) down 0.4%, Northrop Grumman (NOC.US) down 1.2%, General Dynamics (GD.US) unchanged, and Raytheon Technologies (RTX.US) down 0.8% [2]