Meet the CEOs Raking It in from Trump’s Aggression Toward Iran
S E E D E D C O N T E N T
CEOs of major U.S. military contractors stand to reap huge windfalls from the escalation of conflict with Iran. This was evident in the immediate aftermath of the U.S. assassination of a top Iranian military official last week. As soon as the news reached financial markets, these companies’ share prices spiked, inflating the value of their executives’ stock-based pay.
I took a look at how the CEOs at the top five Pentagon contractors were affected by this surge, using the most recent SEC information on their stock holdings.
Northrop Grumman executives saw the biggest increase in the value of their stocks after the U.S. airstrike that killed Qasem Suleimani on January 2. Shares in the B-2 bomber maker rose 5.43 percent by the end of trading the following day.
Wesley Bush, who turned Northrop Grumman’s reins over to Kathy Warden last year, held 251,947 shares of company stock in various trusts as of his final SEC Form 4 filing in May 2019. (Companies must submit these reports when top executives and directors buy and sell company stock.) Assuming Bush is still sitting on that stockpile, he saw the value grow by $4.9 million to a total of $94.5 million last Friday.
New Northrop Grumman CEO Warden saw the 92,894 shares she’d accumulated as the firm’s COO expand in value by more than $2.7 million in just one day of post-assassination trading.
Lockheed Martin, whose Hellfire missiles were reportedly used in the attack at the Baghdad airport, saw a 3.6 percent increase in price per share on January 3. Marillyn Hewson, CEO of the world’s largest weapon maker, may be kicking herself for selling off a considerable chunk of stock last year when it was trading at around $307. Nevertheless, by the time Lockheed shares reached $413 at the closing bell, her remaining stash had increased in value by about $646,000.
What about the manufacturer of the MQ-9 Reaper that carried the Hellfire missiles? That would be General Atomics. Despite raking in $2.8 billion in taxpayer-funded contracts in 2018, the drone maker is not required to disclose executive compensation information because it is a privately held corporation.
We do know General Atomics CEO Neal Blue is worth an estimated $4.1 billion — and he’s a major investor in oil production, a sector that also stands to profit from conflict with a major oil-producing country like Iran.
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War Is a Racket
War Is a Racket is a speech and a 1935 short book, by Smedley D. Butler, a retired United States Marine Corps Major General and two-time Medal of Honor recipient. Based on his career military experience, Butler discusses how business interests commercially benefit, such as war profiteering from warfare.
So tell me did CEO's for major US military contractors not make a killing before?
I am sure they loved Bush Sr. for Iraq. Clinton for Kosovo. Bush Jr for Afghanistan, Iraq, and extra judicial drone killings in Afghanistan & Pakistan. And Obama for Afghanistan, Iraq, Libya, Syria, and expanding extra judicial drone killings across the ME.
War is good for for these people no matter who is in charge.
But somehow this is all new and special under Trump.
War Is A Racket was a speech given in 1935, so I think the concept of defense contractors being happy when there is war is a somewhat old one.
If it were for the contractors, it would require a much larger military force to handle the logistics of what they do. Well, on the plus side for you, you would still have the defense budget to whine and cry over.
And on the plus side for me, I recently bought some defense stocks. (As well as some in gold, oil, and cyber-security-- typical plays on an expected war. Anticipating trump's craziness as I did.)
Had to sell some tech stocks toget the cash for the purpose-- but that's fine
Funny thing is, despite popular belief, the President doesn't approve the use of MQ-1's or MQ-9s. That approval is left to the in theater commander. Especially at the volume they are used.
Hey John, instead of getting jealous that people make money off their work, how about you get into defense contracting with the government and make your own money?
That comment is too stupid to merit a response.
Just saying, don't get all salty when people are in an industry that makes money. I doubt you get all mad every time Apple exploits foreign labor to make a profit off the next model of their iphone. Oh right because their execs are socially liberal so you don't mind seeing them succeed.
"Aggression towards Iran!"
I think I'll let people dwell on that for a while.
That is the new calling card for the left. The US needlessly provoking those poor Iranians.
All they were trying to do was kill US personnel and destroy US assets. What ever is the harm in that?
The key is to coexist with murderous regimes which murder Americans. State Department foreign policy for far too long.
Or pay them billions like Barry and Joe Joe his idiot VP.
What a steaming pile of horseshit. CEO's have been raking it in since Desert Storm. More faux freak out by the idiots on the left.
Actually long before that!
I'm no expert on American History-- but I bet some enterprising weapons manufacturer made some good money selling Muskets to George Washington and the Continental army.
And, in fact, someone has to manufacture weapons to supply all the armies of the world. (I wonder if the arms purchasing arrangements are more or less corrupt in Communist countries than they are here? Communist Countries--.. where the governments preach that everyone is "equal"???