Related videos:
The President of the United States, Donald Trump, stated that he will not allow U.S. defense contractors to pay dividends or repurchase shares.
In a message on his social media Truth Social , he stated that the measure will continue "until the issues" that, according to him, are affecting production, maintenance, and modernization in the military industry are resolved.
In the text, Trump asserts that contractors are allocating "massive dividends" and "massive buybacks" "at the expense" of investing in facilities and equipment, something that—he claims—"will no longer be allowed or tolerated."
It suggests that the money that is currently being allocated to dividends and buybacks should instead be used to build new and modernized production facilities, speed up deliveries, and enhance equipment maintenance.
Trump also questioned the salaries and compensations of industry executives, which he described as "exorbitant and unjustifiable" in light of the "slowness" with which, he claimed, companies deliver "vital" equipment to the Armed Forces and allies.
In this context, he stated that until the necessary facilities are built and modernized, “no executive should be able to earn more than 5 million dollars”, pointing out that this figure would be “just a fraction” of what they are currently earning, according to him.
The president also included specific demands regarding the maintenance and repair of the sold equipment, stating that these processes are “too slow” and “must be improved immediately.”
“As president, I demand that maintenance be timely and precise”, the text adds.
In his conclusion, Trump justified the announced ban by stating that "the military equipment is not manufactured quickly enough" and that, instead of borrowing from financial institutions or receiving funds from the government, the industry should finance capacity increases with the money it currently allocates to dividends, stock buybacks, and “overcompensation” for executives.
He stated that, in the long run, this would also benefit executives and shareholders “because it will be excellent” for the country.
Filed under: