Donald Trump Limits Contractor Pay Following Defense Budget Hike

Donald Trump issued an executive order authorizing Defense Secretary Pete Hegseth to limit executive salaries and stock buybacks for military contractors failing to meet production targets.The directive grants the Pentagon authority to cap pay at $5 million and ensure future contracts are tied to delivery speed rather than short-term financial metrics.This regulatory move follows a proposal to increase the defense budget by 50 percent to $1.5 trillion, which triggered a significant rally for firms like Lockheed Martin and Saab.