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On January 7, 2026, President Trump signed an executive order restricting major US defense contractors from stock buybacks and dividends that could impair procurement and production capacity. The order mandates that executive compensation be tied to performance metrics, and the Department of Defense will identify underperforming contractors by February 6, 2026, imposing consequences for inadequate remediation. Additionally, the SEC is instructed to consider amendments to Rule 10b-18 and impose salary caps on non-compliant contractors, aiming to enhance accountability and production efficiency in the defense sector.