What Happened
Executive Order Targets Dividends and Executive Compensation
The US government has introduced new restrictions on defense contractors’ ability to pay dividends to shareholders or buy back stock, as part of an executive order aimed at improving contractor performance. The order, which was released by President Donald Trump, directs the Defense Department to review contractor performance and penalize poor performers. While some industry officials have expressed support for the move, others have raised concerns about the potential impact on investment and the ability of companies to reward their investors. The development was first reported by Breaking Defense.