Pentagon Seeks to Formalize Trump’s Threats on Contractor Pay

The Pentagon is looking to turn President Donald Trump’s threats on government contractors into enforceable contract provisions and potentially Securities and Exchange Commission regulations.

Defense acquisition officials completed a review of contractor performance, according to a statement, and are looking to formalize mechanisms through which they’d enforce the president’s crackdown on share buybacks and executive compensation.

Defense companies “are currently issuing massive Dividends to their Shareholders and massive Stock Buybacks, at the expense and detriment of investing in Plants and Equipment,” Trump posted to social media Jan. 7 as he signed an executive order directing the effort. “This situation ...