While some companies and analysts fret about U.S. President Donald Trump’s threat to crack down on the defense industry, the founder of a $30 billion defense tech company has emerged as an unlikely supporter of his massive overhaul.
Palmer Luckey, who founded Anduril in 2017, came out in support of Trump’s policies even as he noted that some changes “might not necessarily help the defense space.”
“I think it’s even good maybe to scare people sometimes,” Luckey
said in an interview with Bloomberg TV.
The reforms, which the White House outlined in
a Wednesday executive order, cap defense company CEO’s salaries at $5 million annually until certain conditions are met.
As of around 2021 Luckey, who is not the CEO of Anduril, reportedly earned $10.9 million in compensation from the company, TechCrunch
reported.
The CEOs of major defense contractors RTX Corp (formerly Raytheon) and Lockheed Martin made $18 million and $23 million, respectively, in annual compensation as of 2024.
Luckey compared Trump’s defense reforms to “grounding” a teenager and noted they were positive as a temporary measure to help improve the sector’s performance overall.
“I think when you are on the dole, and effectively run on the public’s wallet, the public should be able to impose whatever restrictions they want on you,” Luckey told Bloomberg.
—Marco Quiroz-Gutierrez