The Tennessee Valley Authority, one of the largest employers in the Chattanooga area, will reduce pay across the agency by as much as $153 million in response to a memo from President Donald Trump.
The nation’s largest government-owned power provider will reduce performance-based payouts for all employees and change the peer group it uses to set pay for top executives.
The changes were outlined in a response sent to Trump on May 22 by TVA Board Chair Mitch Graves and released to the Chattanooga Times Free Press on Thursday.
The reductions include a $65 million reduction in executive pay between 15 positions the agency has cut and compensation cuts for remaining executive positions. Trump signed a memo in March directing the agency to set a $500,000 compensation limit for all employees.
(READ MORE: TVA director expressed concern over CEO search before Trump firing)