Donald J. Trump 
UNCLASSIFIED
Presidential Actions
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) is a wholly owned corporate agency and instrumentality of the United States that operates for the public benefit. As a federally owned entity, the TVA is entrusted with stewarding public resources in a manner consistent with principles of fiscal responsibility, accountability, and public service. Excessive compensation at federally owned corporations undermines public confidence and is inconsistent with responsible stewardship of Federal resources. The President of the United States — the chief executive officer of the entire Federal Government — is paid a salary of $400,000. The highest paid governor in the United States — the chief executive officer of an entire State — is paid approximately $254,000 per year. Yet senior executives at the TVA have received compensation in the millions of dollars for their ostensibly public service. To ensure fiscal responsibility and alignment with public sector standards, it is necessary to impose reasonable limits on compensation at the TVA.
Sec. 2. Compensation Limits. (a) In conducting its annual survey of prevailing compensation, the Board of Directors of the TVA (the “Board”) shall place greater weight on the compensation of Federal, State, and local government officials. The Board shall, as appropriate and if consistent with its annual survey, adopt and implement policies establishing a maximum total annual compensation limit of $500,000 for all TVA employees, including the Chief Executive Officer.
(b) For purposes of this memorandum, “total annual compensation” includes salary or any other pay, bonuses, incentives, and any other form of current or future financial compensation provided by the TVA to the relevant employee.
(c) The compensation limitation described in subsection (a) of this section is recommended as to all compensation arrangements entered into on or after the date of this memorandum.
(d) Compensation for members of the Board shall be limited to the minimum provided for in statute.
Sec. 3. Implementation. (a) Within 90 days of the date of this memorandum, the Board shall consider whether to adopt such policies, resolutions, or governance measures as would be necessary to implement the compensation limitation identified in section 2(a) of this memorandum.
(b) Within 120 days of the date of this memorandum, the Board shall submit a written certification of compliance to the President, through the Director of the Office of Management and Budget, describing the actions taken to carry out this memorandum.
Sec. 4. General Provisions. (a) Nothing in this memorandum shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
DONALD J. TRUMP
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