Democratic Senator Elizabeth Warren and Representative Sean Casten have urged defense contractor BAE Systems not to conduct stock buybacks while it is benefiting from the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act.
• The two lawmakers sent a letter to the CEO of BAE Systems, a major defense contractor, regarding its plans to carry out stock buybacks while benefiting from a government grant designed to boost domestic chip production.
• They argue that the company should prioritize its employees and the national security of the United States over shareholder returns.
• Warren and Casten criticized the company for planning to use $1 billion for stock buybacks while it is benefiting from the CHIPS grant.
• They called on the company to reinvest the money into the business and protect its workforce instead.
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