Lawmakers look to codify limits on defense contractor executive compensation

Federal Newscast · Mar 30, 2026 · 6m

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…