Promoting Fiscal Responsibility in Compensation Practices at the Tennessee Valley Authority

The order directs federal agencies to require the Tennessee Valley Authority Board of Directors to place greater weight on federal, state, and local government compensation when conducting its annual compensation survey and, if appropriate and consistent with that survey, adopt a maximum total annual compensation limit of $500,000 for all TVA employees, including the CEO. The memorandum defines total annual compensation to include salary, bonuses, incentives, and other financial compensation, limits Board member pay to statutory minimums, and instructs the Board to consider implementing these policies and certify compliance through the Office of Management and Budget.