Trump Issues Memo Urging TVA Board to Adopt $500,000 Pay Cap

Overview

• The Presidential Memorandum directs the TVA Board to consider a maximum total annual compensation of $500,000 for all employees, including the CEO, if consistent with its annual compensation survey.
• Total annual compensation is defined to include salary, bonuses, incentives, benefits, and any other current or future financial remuneration.
• The Board must place greater weight on Federal, State, and local government pay when conducting its annual prevailing compensation survey.
• Within 90 days the Board must consider adopting necessary policies, and within 120 days it must certify compliance to the President through the Office of Management and Budget.
• The cap is recommended for new compensation arrangements from the memorandum’s date, Board member pay is limited to the statutory minimum, and implementation must comply with applicable law and available appropriations without creating enforceable rights.