On Wednesday, the President threatened to impose a cap on executive salaries at major US defense contracting companies, ban dividend payments to shareholders, and halt stock buybacks, accusing the sector of prioritizing profits over production speed.
Trump wrote in a lengthy post on his social media platform Truth Social, “Defense contracting companies are currently distributing huge dividends to their shareholders and conducting massive stock buybacks, at the expense of investing in factories and equipment.”
Trump confirmed that defense company executives would be prohibited from earning more than $5 million annually until they build new manufacturing facilities and accelerate the delivery of military equipment.
He added, “If this amount seems high… it is only a small fraction of what they earn now.”
Trump continued, “This situation will no longer be allowed or tolerated!”
Following his statements, the stock prices of US defense sector companies, such as Lockheed Martin and General Dynamics, fell by more than 4%.
Northrop Grumman shares also lost more than 5% of their value.
In a separate post on the same platform, Trump attacked Raytheon, threatening to reduce its government business, and said it had been “the least responsive to the needs of the War Department.”
Defense Budget Increase
Trump also criticized the maintenance and repair schedules for equipment that had been sold, demanding that service be “precise and on time.”
He said, “I will not allow dividend payments or stock buybacks for defense companies until these problems are corrected,” noting that companies should fund their investments with their own money instead of financing them through government contracts or bank loans.
On a related topic, Trump announced that he wants to increase the US defense budget by 50% next year to reach $1.5 trillion, in order to confront “turbulent and dangerous times.”
Trump said on his Truth Social platform, “I have decided that, for the good of our country, especially in these very turbulent and dangerous times, our military budget for 2027 should not be one trillion dollars, but 1.5 trillion dollars.”
He added that the increase is possible thanks to revenues from the comprehensive tariffs imposed since his return to the presidency at the beginning of last year.
Donald Trump
Donald Trump is a businessman and media personality who served as the 45th President of the United States from 2017 to 2021. His presidency was marked by significant tax reforms, changes to immigration policy, and a distinctive, often controversial, communication style.
Mar-a-Lago
Mar-a-Lago is a historic resort and national landmark in Palm Beach, Florida, originally built as a private estate for cereal heiress Marjorie Merriweather Post between 1924 and 1927. It was designed in a Spanish-Moorish style and later became a property of the U.S. government before being purchased in 1985 by Donald Trump, who converted it into a private club.
Palm Beach
Palm Beach is a barrier island town in Florida, U.S., originally inhabited by Native Americans before becoming a coconut plantation in the late 19th century. It was transformed into a luxury resort destination by industrialist Henry Flagler, who built grand hotels and railroads, cementing its status as an iconic enclave for the wealthy. Today, it is renowned for its Gilded Age architecture, pristine beaches, and high-end shopping along Worth Avenue.
Florida
Florida is a southeastern U.S. state known for its extensive coastline, theme parks, and warm climate. It was first colonized by the Spanish in the 16th century, became a U.S. territory in 1821, and was admitted as the 27th state in 1845. Its history is deeply shaped by its indigenous peoples, Spanish colonial rule, and later development as a major tourist and agricultural center.
Truth Social
Truth Social is a social media platform launched in February 2022 by Trump Media & Technology Group, founded by former U.S. President Donald Trump. It was created following Trump’s bans from major social networks after the January 6 Capitol riot, with the stated aim of providing a platform for “free expression” and as an alternative to what he described as “Big Tech censorship.”
Lockheed Martin
Lockheed Martin is a major American aerospace, arms, defense, and technology corporation formed in 1995 from the merger of Lockheed Corporation and Martin Marietta. Its historical roots trace back to early aviation pioneers, with the Lockheed company itself founded in 1912, and it has since become a leading contractor for the U.S. Department of Defense and allied governments worldwide.
General Dynamics
General Dynamics is an American aerospace and defense corporation founded in 1952, originally formed through the merger of several existing companies. It has played a significant role in U.S. military and technological history, producing iconic systems such as the F-16 Fighting Falcon jet and the Ohio-class submarine.
Northrop Grumman
Northrop Grumman is a major American aerospace and defense technology company, formed in 1994 through the merger of Northrop Corporation and Grumman Corporation. Its historical roots trace back to both companies’ significant roles in 20th-century military aviation, including producing iconic aircraft like the Grumman F6F Hellcat and the Northrop B-2 Spirit stealth bomber. Today, it is a leading global security provider, developing advanced systems for aircraft, spacecraft, cybersecurity, and more.
Raytheon
Raytheon is an American defense contractor and industrial corporation founded in 1922, originally specializing in radio technology before becoming a major producer of missiles, military electronics, and aerospace systems. It is historically known for developing pivotal defense technologies like the Patriot missile system and, following a 2020 merger, now operates as part of Raytheon Technologies.
War Department
The War Department was a former executive department of the United States government, established in 1789 to oversee military affairs. It was headed by the Secretary of War until 1947, when it was reorganized and replaced by the Department of the Army and the Department of the Air Force under the newly created National Military Establishment (later the Department of Defense).
Singapore
Singapore is a modern city-state in Southeast Asia that was founded as a British trading colony in 1819 by Sir Stamford Raffles. It gained independence in 1965 and rapidly transformed into a global economic hub, known for its multicultural society, strict governance, and iconic landmarks like Marina Bay Sands.
Singapore Airshow
The Singapore Airshow is a major biennial aerospace and defense exhibition held at the Changi Exhibition Centre. First launched in 2008 as a merger of two previous Asian air shows, it has grown into one of the most significant global aviation events, showcasing the latest commercial and military aircraft and technologies.
USA
The United States of America is a federal republic founded in 1776 after declaring independence from Great Britain. Its history is marked by westward expansion, industrialization, and its emergence as a global superpower in the 20th century. The nation is defined by its diverse population, democratic institutions, and significant cultural influence worldwide.
