President Trump Issues Executive Order Aimed At Limiting Stock Buy Backsand Executive Compensation By Certain Defense Contractors

Wiley – On January 7, 2026, President Trump issued an Executive Order to increase production of critical defense weapons, supplies, and equipment. The EO takes aim at stock buybacks and corporate distributions in situations in which the Secretary finds that a contractor is “underperforming,” not investing in “production capacity,” not “sufficiently prioritizing” its government contracts, or whose “production speed is insufficient.” It also calls for future contractual provisions to curb stock buybacks, corporate distributions, and executive pay.