Lawmakers look to codify limits on defense contractor executive compensation

A bipartisan group of lawmakers are seeking to codify President Donald Trump’s executive order that limits stock buybacks and executive pay for certain defense contractors. A new bill, titled Prioritizing the Warfighter in Defense Contracting Act, would prohibit large defense contractors from purchasing their own stock and paying out dividends. It would also prohibit linking executive pay to short-term financial metrics and cap executive compensation at $5 million. Contractors that fail to comply could face penalties, including suspending contract payments and terminating contracts. Republican Senator Josh Hawley said that defense contractors “should be focused on expanding production, not padding their bottom lines.” See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.