Article

On January 7, 2026, President Trump issued an executive order prohibiting major US defense contractors from stock buybacks or dividends that hinder procurement and production capacity. The Secretary of Defense must ensure contracts link executive compensation to performance metrics.

By February 6, 2026, the Department of Defense (DoD) will identify underperforming contractors. Consequences for inadequate remediation include expedited production actions. The order also instructs the SEC to consider amending Rule 10b-18 for identified companies and caps executive salaries for non-compliant contractors. The DoD aims to increase accountability and production efficiency among defense contractors.