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AI Summary: This regulation, Executive Order 14372, establishes a new policy to prioritize the warfighter in defense contracting by ensuring that defense contractors focus on timely and quality delivery of military equipment rather than solely on investor returns. The policy prohibits major defense contractors identified as underperforming on their contracts, not investing in production capacity, not prioritizing government contracts, or having insufficient production speed, from engaging in stock buy-backs or issuing dividends. The Secretary of War is tasked with identifying such underperforming contractors, notifying them, and engaging in discussions to resolve issues, potentially allowing for remediation plans. If issues are not resolved, the Secretary can take enforcement actions, including utilizing the Defense Production Act and contract enforcement mechanisms. Future contracts will include provisions prohibiting stock buy-backs and corporate distributions during periods of underperformance and will link executive compensation to performance metrics like on-time delivery and increased production, rather than short-term financial gains. The order also directs consideration of ceasing advocacy efforts for underperforming contractors and potential regulatory changes by the Securities and Exchange Commission regarding stock buy-backs for defense contractors.