Legislation Targets Poorly Performing Companies' Payouts
A bipartisan bill introduced by Sens. Elizabeth Warren and Josh Hawley aims to restrict poorly performing defense contractors from conducting share buybacks, issuing dividends, and raising executive compensation. The legislation, titled Prioritizing the Warfighter in Defense Contracting Act of 2026, would make these restrictions the default unless the Pentagon submits a waiver stating that the company is meeting schedule and performance requirements. The bill comes amid concerns that defense contractors are prioritizing shareholder returns over investments in national defense, as reported by Breaking Defense.