The president issued a warning to defense contractors, urging them to spend on production instead of stock buybacks, shareholder dividends, and executive pay.
President Donald Trump criticized military contractor Raytheon on Jan. 7 and warned that its future business with the U.S. government may be in jeopardy if the firm doesn’t change its practices.
“I have been informed by the Department of War that Defense Contractor, Raytheon, has been the least responsive to the needs of the Department of War, the slowest in increasing their volume, and the most aggressive spending on their Shareholders rather than the needs and demands of the United States Military,” Trump wrote in a post on Truth Social on Wednesday.
Raytheon produces a variety of weapons and equipment for the military, including missiles, missile defense systems, radar systems, and sensors.
“Either Raytheon steps up, and starts investing in more upfront Investment like Plants and Equipment, or they will no longer be doing business with Department of War,” Trump wrote.
“Also, if Raytheon wants further business with the United States Government, under no circumstances will they be allowed to do any additional Stock Buybacks, where they have spent Tens of Billions of Dollars, until they are able to get their act together. Our Country comes FIRST, and they’re going to have to learn that, the hard way!”
The Epoch Times reached out to Raytheon for comment on Trump’s social media post and did not receive a response by publication time.
Trump’s comments toward the defense contractor are just the latest of his administration’s efforts to reform the relationship between the military and its defense industry partners.
In a Truth Social post earlier on Wednesday, Trump issued a warning to defense contractors broadly, criticizing them for offering stock buybacks and paying out dividends to shareholders. He said such practices “will no longer be allowed or tolerated!”
Trump also took aim at the compensation packages defense industry executives receive, stating those packages “are exorbitant and unjustifiable given how slowly these Companies are delivering vital Equipment to our Military, and our Allies.”
“Salaries, Stock Options, and every other form of Compensation are far too high for these Executives,” he added.
By Ryan Morgan
