Washington, D.C., March 11, 2026:
U.S. President Donald J. Trump has signed a presidential memorandum directing the Tennessee Valley Authority (TVA) to impose limits on executive compensation in an effort to promote fiscal discipline and restore public trust in the federally owned utility.
The directive instructs the TVA Board of Directors to establish a maximum total annual compensation limit of $500,000 for all employees, including the chief executive officer. The cap includes salary, bonuses, incentives, benefits, and any other forms of remuneration.
According to the White House, the compensation limits are recommended for all new pay arrangements, provided they align with TVA’s annual compensation survey results.
The administration said the decision targets what it describes as excessive executive pay at TVA, where CEOs have received multi-million-dollar compensation packages in recent years.
Officials noted that the President of the United States earns $400,000 annually, while the highest-paid state governor receives about $254,000, highlighting the contrast with the higher salaries paid at the power agency.
The White House emphasized that TVA, as a wholly owned corporate agency of the federal government, must manage public resources responsibly. Limiting executive pay, it said, will ensure that taxpayer and ratepayer funds are directed toward public benefit rather than large executive payouts.
The measure is part of the administration’s broader effort to reduce fraud, waste, and bureaucratic spending across federal institutions while strengthening fiscal accountability.
