Promoting Fiscal Responsibility in Compensation Practices at the Tennessee Valley Authority

Key Points

• Trump is ordering the Tennessee Valley Authority (TVA) to stop paying its top leaders millions of dollars. The new policy suggests a maximum pay limit of $500,000 per year for any employee, including the Chief Executive Officer.
• The memo argues that because the TVA is owned by the government, its pay should look more like other public service jobs. For comparison, the president makes $400,000 a year and the highest-paid governor makes about $254,000.
• This change will mostly affect high-level executives who currently receive large bonuses and salaries. The goal is to make sure public resources are used responsibly and to keep pay in line with what other government officials earn.
• The TVA Board of Directors has 90 days to decide how to put these new rules into place. They must report back to the government within 120 days to show they are following the new guidelines for all future pay deals.

Impact Analysis

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