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This bill prohibits the Department of Defense from entering into contracts with large defense contractors (those receiving over $250 million annually from DoD) unless they agree to ban stock buybacks and dividend payments, cap executive compensation at $5 million per year, and tie compensation to non-financial performance metrics rather than short-term financial measures. The bill establishes a waiver process for contractors meeting specific performance benchmarks, creates a compliance and enforcement mechanism including penalties for violations, and requires annual reporting to Congress on contractor compliance.
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