MEMORANDUM FOR THE BOARD OF DIRECTORS OF THE TENNESSEE VALLEY AUTHORITY
SUBJECT: Promoting Fiscal Responsibility in Compensation Practices at the Tennessee Valley Authority
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Tennessee Valley Authority Act of 1933, as amended (16 U.S.C. 831 et seq.), I hereby direct:
Section 1. Policy and Purpose. The Tennessee Valley Authority (TVA) serves as a fully owned corporate agency of the United States, dedicated to the public good. As a federal entity, TVA is responsible for managing public resources with a commitment to fiscal integrity, accountability, and service to the public. When federal corporations offer excessive compensation, they risk eroding public trust and contradicting the principles of prudent resource stewardship. For context, the President of the United States earns a salary of $400,000, while the highest-paid state governor makes approximately $254,000 annually. Yet, senior executives at TVA have been known to receive compensation packages in the millions, raising questions about the nature of their public service. To uphold fiscal responsibility and ensure alignment with public sector norms, it is crucial to establish sensible limits on compensation at TVA.
Sec. 2. Compensation Limits. (a) In its annual review of compensation trends, the TVA Board of Directors (the “Board”) must prioritize the salaries of federal, state, and local government officials. The Board shall, as appropriate and in line with its survey findings, implement policies to cap total annual compensation for all TVA employees, including the Chief Executive Officer, at $500,000.
(b) For the purposes of this memorandum, “total annual compensation” encompasses salary, bonuses, incentives, and any other forms of financial compensation currently or potentially provided by TVA to the respective employee.
(c) The compensation limit outlined in subsection (a) applies to all compensation agreements initiated after the issuance of this memorandum.
(d) Compensation for Board members will be restricted to the statutory minimum.
Sec. 3. Implementation. (a) Within 90 days of this memorandum’s issuance, the Board shall evaluate the adoption of necessary policies, resolutions, or governance measures to enforce the compensation cap specified in section 2(a).
(b) Within 120 days of this memorandum’s issuance, the Board is required to submit a written certification of compliance to the President, through the Director of the Office of Management and Budget, detailing the actions taken to execute this memorandum.
Sec. 4. General Provisions. (a) This memorandum shall not be construed to hinder or otherwise affect:
(i) the legally granted authority of any executive department or agency, or their heads; or
(ii) the responsibilities of the Director of the Office of Management and Budget regarding budgetary, administrative, or legislative proposals.
(b) This memorandum will be implemented in accordance with applicable law and contingent upon the availability of appropriations.
(c) This memorandum is not intended to, and does not, create any enforceable rights or benefits—either substantive or procedural—against the United States, its departments, agencies, or entities, or any officers, employees, or agents thereof, or any other individual.
DONALD J. TRUMP
