The Tennessee Valley Authority has had seven restructurings, including three major reorganizations, since Congress revamped the way the federal utility is governed a decade ago.
A new audit shows the changes have been costly for TVA: Nearly half the 47 executives hired during the period left within the decade, at a cost of $7.4 million.
BY THE NUMBERS
From 2005 to 2014: 54: Number of top managers (vice president and above) in 2014, up from 46 a decade earlier 47: Number of executives recruited from outside TVA 55: Number of existing employees promoted to executive positions 79: Number of executives who left TVA $7.4 million: Cost of recruiting, hiring and severance expenses for 20 executive who joined and then left within the period Source: “TVA Executive Retention,” TVA Inspector General final report
Since 2004, when Congress replaced the three-member, full-time board with a nine-member, part-time board, TVA is not only paying its executives higher salaries, but has enlarged its leadership team and increased turnover expenses, an inspector general’s report found.
The audit showed TVA had 54 executives last year when the report was completed, compared to 46 a decade ago, before the expanded board structure began. That’s a 17 percent increase.