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INVESTORS IN DEFENSE STOCKS WARY AS TRUMP PLACES NEW LIMITS ON CEO PAY AND DIVIDENDS

  • NEWS Desk Global
  • 1 day ago
  • 1 min read

Investors in defense contractors worry that a White House order restricting CEO pay, dividends and stock buybacks could reduce returns for shareholders and impede the companies' ability to attract the best executives.

U.S. President Donald Trump issued an executive order on January 7 prohibiting defense contractors from paying dividends or buying back shares "until such time as they are able to produce a superior product, on time and on budget." Separately Trump also said annual CEO payouts should be limited to $5 million.

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