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PALM BEACH, Florida, Dec 22 (Reuters) – U.S. President Donald Trump said on Monday he will meet major defense contractors next week to address production delays and cost overruns while the administration plans an executive order to limit dividends, buybacks and executive pay.
Trump said the discussions will examine the role executive compensation, stock buybacks and dividends may be playing in companies’ failure to meet production targets.
“We’re going to start spending money on building airplanes and ships, and the things that we need, not in 10 years and 15 years. We need them now,” Trump said.
Reuters reported last week the administration was planning an executive order to limit dividends, buybacks and executive pay for defense contractors whose projects are over-budget and delayed.
Trump and the Pentagon have been complaining about the expensive, slow-moving and entrenched nature of the defense industry, promising dramatic changes that would make the production of war equipment more nimble.
(Reporting by Jarrett Renshaw; Editing by Chris Reese and Howard Goller)
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