Strategic Corporate Social Responsibility: Strategic CSR

Tuesday, February 17, 2026

Strategic CSR - Share buybacks

There is a good chance the motivation is distorted but, among all the noise and activity emanating from Washington DC, the announcement included in the article in the url below caught my attention:

"President Trump lashed out at U.S. weapons manufacturers Wednesday, announcing new restrictions on executive pay and stock buybacks while also threatening to cancel contracts with one of the country's largest defense contractors."

I like it because it discourages an emphasis on shareholder value, while also addressing the mildly corrupt nature of government contracting in the defense sector:

"An executive order posted Wednesday evening said companies 'are not permitted in any way, shape, or form to pay dividends or buy back stock, until such time as they are able to produce a superior product, on time and on budget.'"

And the intention behind the executive order is specific:

"Earlier Wednesday, Trump said in a Truth Social post that he would limit executive pay to $5 million, but the dollar figure wasn't included in the executive order. … Trump also singled out contractor RTX in a separate social-media post, saying that the company 'has been the least responsive' to the Pentagon's needs and 'the slowest in increasing their volume, and the most aggressive spending on their Shareholders rather than the needs and demands' of the U.S. military."

While enforcement will be a challenge (and limiting pay will not amount to much unless stock options are also capped), the intention responds to a real issue:

"Saying that he was addressing defense contractors and the defense industry, Trump wrote, that '…Defense Contractors are currently issuing massive Dividends to their Shareholders and massive Stock Buybacks, at the expense and detriment of investing in Plants and Equipment. This situation will no longer be allowed or tolerated!'"

Again, I am not confident that the issue is fully understood or that the order will be systematically implemented, but the story was still encouraging to see.

Take care

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

Trump Lashes Out at Defense Firms, Buybacks

By Marcus Weisgerber and Drew FitzGerald

January 8, 2026

The Wall Street Journal

Late Edition – Final