United States President Donald Trump said on Wednesday that he would not permit defence companies to pay dividends or carry out share buybacks until they address persistent problems in the production and maintenance of military equipment, according to a Reuters report.

In a post on Truth Social, Trump accused defence contractors of failing to deliver military hardware quickly enough and of not maintaining equipment to required standards once produced.

“Defence companies are not producing our great military equipment rapidly enough and, once produced, not maintaining it properly or quickly,” Trump said.

The president also criticised executive compensation in the defence industry, describing pay packages as “exorbitant and unjustifiable”. He said senior executives should prioritise expanding and modernising production capacity rather than rewarding shareholders and management.

“From this moment forward, these executives must build new and modern production plants, both for delivering and maintaining this important equipment and for building the latest models of future military equipment,” Trump said, without naming specific companies or executives.

Trump further suggested a cap on executive pay, saying no defence industry executive should earn more than $5 m annually until the sector resolves its production challenges. He argued that the proposed limit, while substantial, was far below what many executives currently earn.

According to Reuters, the comments reflect long-standing frustrations expressed by Trump and the U.S. Department of Defense over what they see as an expensive, slow-moving and entrenched defence industry. Both have pledged sweeping reforms aimed at making the production of military equipment faster, more efficient and more responsive to national security needs.

The remarks raise the prospect of tighter government oversight of defence contractors and could have implications for investors, as dividends and share buybacks are key components of shareholder returns in the sector.