US President Donald Trump has vowed to crack down on defense firms that prioritize executive pay and stock buybacks over investing in military equipment and production plants. He claims that these companies are failing to deliver vital gear to the US and its allies at an acceptable pace.
Trump wants to increase the military budget to $1.5 trillion by 2027, citing a need for a "Dream Military" that will keep the country safe and secure. However, he believes that defense contractors are more focused on enriching shareholders than investing in modern equipment and production facilities.
The US President is particularly critical of Raytheon, which owns RTX, saying it has been slow to respond to Pentagon needs and prioritizes shareholder payouts over investment in equipment and plants. Trump threatens to cut ties with Raytheon if it fails to reform its business practices.
To address this issue, Trump proposes limiting executive compensation to $5 million, freezing dividends and stock buybacks, and requiring defense contractors to invest more in production and equipment. He believes that these measures will ensure that the US military receives the necessary gear to operate effectively.
The proposed reforms come as the Trump administration pushes for a significant increase in military spending. The increased budget would be the largest in history, with some estimates suggesting it could reach $1.7 trillion by 2028.
However, defense industry officials have declined to comment on the proposals, and it remains unclear whether Trump's plans will be implemented or how they will affect the defense sector. One thing is certain, however: Trump's tough stance on executive pay and stock buybacks signals a shift in priorities for the US military and its contractors.
Trump wants to increase the military budget to $1.5 trillion by 2027, citing a need for a "Dream Military" that will keep the country safe and secure. However, he believes that defense contractors are more focused on enriching shareholders than investing in modern equipment and production facilities.
The US President is particularly critical of Raytheon, which owns RTX, saying it has been slow to respond to Pentagon needs and prioritizes shareholder payouts over investment in equipment and plants. Trump threatens to cut ties with Raytheon if it fails to reform its business practices.
To address this issue, Trump proposes limiting executive compensation to $5 million, freezing dividends and stock buybacks, and requiring defense contractors to invest more in production and equipment. He believes that these measures will ensure that the US military receives the necessary gear to operate effectively.
The proposed reforms come as the Trump administration pushes for a significant increase in military spending. The increased budget would be the largest in history, with some estimates suggesting it could reach $1.7 trillion by 2028.
However, defense industry officials have declined to comment on the proposals, and it remains unclear whether Trump's plans will be implemented or how they will affect the defense sector. One thing is certain, however: Trump's tough stance on executive pay and stock buybacks signals a shift in priorities for the US military and its contractors.
anyways trump thinks he's all cool by threatening to cut ties with raytheon but like what's next? will he audit their tax returns too 
guess we'll just have to wait and see how this whole "dream military" thing plays out 
I've got the tea 
, folks! Trump is about to shake things up big time in the defense industry. He's had it up to here 
with these companies prioritizing their CEOs' pockets over producing top-notch gear for our troops and allies. The Dream Military is coming, but at what cost? 
It's all about getting those fat checks from shareholders, not keeping America safe.
. Will Trump get his way, and we'll have the most expensive military in history? Or will it all fall apart at the seams 
? I've got my eyes on this one! 
! Can't believe Trump is taking on defense firms over their own interests 
. If he's serious about upgrading the military 
, these reforms might just work 
. Raytheon needs to step up its game 
and prioritize national needs 
over shareholder profits 
. It's time for some serious reform 
! Trump's the man 
on this one, at least 
anyway, i guess if you want to spend that kinda cash on gear, you gotta make sure those defense contractors aren't just skimming off the top 
meanwhile, raytheon's all "we're working on it" but i'm over here thinking they've been working on their spreadsheets since the 90s 
... but on the other hand, having a strong military is kinda crucial for national security, right? 
... but at the same time, it's like, yeah, maybe the industry needs some sort of reform 
... we don't want to scare off investment in defense contractors by being too strict 
. And let's be real, $5 million max on executive pay is a good start - I mean, who needs that kind of cash when we've got a war to win?