WASHINGTON (dpa-AFX) - President Donald Trump has signed a Presidential Memorandum directing the Tennessee Valley Authority Board of Directors to implement reasonable compensation limits for all its employees, including the CEO, to ensure fiscal responsibility, restore public trust, and align with public-sector standards.
The Memorandum instructs the TVA Board to establish a maximum total annual compensation limit of $500,000 for all TVA employees, including salary, bonuses, incentives, benefits, and all other remuneration, if consistent with its annual compensation survey results.
These reasonable compensation limits are recommended for all new compensation arrangements.
Compensation for Board members is limited to the statutory minimum.
President Trump is ending excessive executive pay at the TVA, where CEOs have received millions in compensation, far exceeding salaries paid elsewhere in the Federal government, the White House said.
'The TVA, as a wholly owned corporate agency of the Federal government, must steward public resources responsibly; multi-million-dollar CEO packages undermine that duty and public trust'.
TVA's seven-figure compensation packages are inconsistent with other public sector leadership roles, it noted. the President of the United States is paid $400,000 annually and the highest-paid governor in the nation earns roughly $254,000.
Implementing reasonable compensation limits ensures taxpayer dollars-and ratepayer funds-are used for the benefit of the American people, not excessive payouts to executives.
The Tennessee Valley Authority is a federally owned corporation created in 1933 to provide flood control, navigation, electricity generation, and economic development for the Tennessee Valley, a region covering most of Tennessee and parts of six surrounding states. It is the nation's largest public power provider, funding its operations primarily through electricity sales.
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