Trump says he plans crackdown on defense firms over executive pay and stock buybacks

Group 1: Executive Compensation and Shareholder Payouts - The US President plans to impose restrictions on executive compensation and shareholder payouts at military defense contractors, specifically capping executive pay at $5 million until delivery issues are resolved [2][4][7] - In fiscal year 2024, top executives at major defense firms received significant compensation, with Lockheed Martin and General Dynamics CEOs earning over $23.7 million each, RTX CEO over $18 million, and Northrop Grumman CEO over $24.3 million [4] Group 2: Military Budget and Spending - The military budget is proposed to increase to $1.5 trillion by 2027, building on a recent authorization of $901 billion for the current fiscal year [5][6] - The President emphasizes the need for a "Dream Military" to ensure national security, linking increased spending to the urgency of military equipment production [6] Group 3: Defense Contractors' Performance - The President criticized defense contractors for not delivering vital equipment quickly enough, stating that their focus on dividends and stock buybacks is detrimental to military readiness [2][4][7] - Raytheon, owned by RTX, has been specifically called out for being the least responsive to Pentagon needs and for prioritizing shareholder returns over military demands [7][8]