- Congressman: McAuliffe victory means gun control a winning message
- Clinton aide admits soliciting disgraced D.C. fundraiser; says actions were legal
- Joel Osteen church victimized in $600K theft
- Obama goes shopping at Gap as minimum-wage thanks
- N.J. woman charged after client dies from black-market butt injections
- CIA chief Brennan ‘determined’ to speak out more this year
- Reset? What reset? U.S.-Russia ties at worst since Cold War
- 9/11 terror recruiter released in Syrian prisoner swap
- D.C. elections board gives green light to marijuana legalization initiative
- Elephants can tell difference between human languages: study
TVA’s top executive gets 10 times Obama’s pay
Federal cap can’t be used
The Tennessee Valley Authority is owned by the federal government and provides electricity to millions of customers in seven states, including Virginia, but the salaries it pays its executives aren’t anything like what most federal workers can imagine.
Last year, the TVA paid more than $4 million just to its top executive, about 10 times what President Obama makes, while another executive’s personal fortunes rose by more than 50 percent to well over $3 million.
The utility detailed the generous executive compensation in a recent filing with the Securities and Exchange Commission, prompting quick criticism from one Republican member of Congress from Tennessee who called the pay excessive.
But the payouts, including salary, retirement and bonus compensation, are perfectly legal because the self-financed TVA, for the most part, is unrestrained by compensation caps imposed across the rest of the federal government.
In its SEC filing, the utility also noted that under its policies, compensation should be based on an annual survey of prevailing compensation for similar positions in private industry. By that measure, utility officials say, TVA executives are underpaid compared with private-sector counterparts.
Indeed, the top executive for Pepco Holdings Inc., the utility that supplies electricity for much of the Washington region, received nearly $7.2 million in salary and other compensation last year, according to SEC filings. Still, Pepco doesn’t have the close relationship between the federal government and TVA, whose directors are presidentially appointed.
“To give pay raises as high as 50 percent in times of relatively low inflation is just wrong and unfair to rate payers,” he said.
Calling on Mr. Obama to appoint “very fiscally conservative people” to the TVA’s board of directors, the lawmaker also noted that almost all federal employees have had their salaries frozen as many in the private sector are facing salary cuts.
“As a board, we know TVA must hire and retain people with experience to operate and maintain a complex power system,” Mr. Sansom said in a statement. “TVA operates one of the nation’s largest public utility systems and competes with other investor owned utilities to sustain operational excellence.”
“Because East Tennessee is one of the popular places to live in the entire country, TVA can get outstanding people at its top level without paying these extraordinary salaries,” he said.
© Copyright 2014 The Washington Times, LLC. Click here for reprint permission.
About the Author
Jim McElhatton is an investigative reporter for The Washington Times. He can be reached at email@example.com.
- Thompson plea raises questions about his old accounting firm
- Judge dismisses KBR's attempt to divert legal bills on sickened troops in Iraq to taxpayers
- Bill Clinton cashes in on struggling nonprofit hospital
- Fate of Alex Cho, cooperator in bribery case, uncertain after Justice Department reneges on promises
- Ex-Time executive gets ethics waiver to communicate with press
Latest Blog Entries
TWT Video Picks
An America drowning in red ink is the land of the free no more
- David Jolly wins in Florida, GOP keeps swing district seat
- Kim Jong-un calls for execution of 33 Christians
- House Democrats trying to force unemployment insurance vote
- Redskins bypass big splash - for now - as free agency period begins
- Hillary Clinton campaign received funds from Jeffrey Thompson
- FCC targets black conservative in TV station fight
- Atheists sue to remove 'Ground Zero Cross' from 9/11 museum
- Sharyl Attkisson resigns from CBS after months of talks
- 80 people publicly executed across North Korea for films, Bibles
- U.S. pilot scares off Iranians with 'Top Gun'-worthy stunt: 'You really ought to go home'
Pope Francis meets his 'mini-me'
Celebrity deaths in 2014
Winter storm hits states — again