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Executive Order Seeks to Limit Stock Buy Backs and Executive Compensation for Underperforming Defense Contractors
Pillsbury Winthrop Shaw Pittman LLP
[Guidance Overview] Feb. 2, 2026 "[EO 14372] directs the Secretary to ensure contracts and contract renewals executed after March 8, 2026, contain a new clause aligned with the EO. Contractors subject to the new clause must have executive incentive compensation plans that reward on time deliveries and investments in production capacity rather than achievement of short-term financial metrics. If the DoW determines ... that a contractor does not sufficiently prioritize, invest in or establish acceptable production rates, contractor compensation and executive incentive plans will be scrutinized." MORE >> |
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