Question about TVA executive salaries

[KyMUfan]

Good move or bad move by Trump?

Top-paid federal employee leaving $10.5M job — after first-term Trump said ‘we’re getting rid of him’

‘Sounds like [Jeff] Lyash got DOGE’d,’ a senior administration official told The Post.

nypost.com

"WASHINGTON — Tennessee Valley Authority CEO Jeff Lyash — the highest-paid federal employee with a compensation package of $10.5 million per year — abruptly announced Friday that he was retiring 11 days after the return to office of President Trump, who during his first term slammed Lyash’s “ridiculous” pay and vowed to fire him."

"Other TVA employees are also earning top dollar — with chief financial officer John Thomas raking in $6.3 million a year, chief operating officer Don Moul earning $5 million, general counsel David Fountain making $3.3 million and chief nuclear officer Tim Rausch taking home $3.3 million, according to a November report from the Knoxville News Sentinel."

 

[extragreen]

His pay is about 29% less than the median CEO at peer energy companies. Idiot.

 

[Rock98Dog]

Hate to say this, but $10MM for a CEO of a company with over $12B in revenue and 10,000 employees is well within the market.

They made $1.1B last year, which was a $365MM increase from the previous year.

Not saying it’s not too much, but that’s the market.

 

[KyMUfan]

Hate to say this, but $10MM for a CEO of a company with over $12B in revenue and 10,000 employees is well within the market.

They made $1.1B last year, which was a $365MM increase from the previous year.

Not saying it’s not too much, but that’s the market.

Ok. AEP's CEO made approximately $10MM as well, with about $8MM in stock. But TVA is a quasi-government agency.

There are two shipping entities of similar size - Revenues of $87B vs $80B with both having approximately 500k employees. One CEO made $12.3MM last year while the other made $341k. One entity is FedEx. The other is the USPS which is also a quasi-government agency.

Also what kind of preferential treatment does the TVA get? One thing it is exempt from federal, state and local income taxes while its peers are not.

There are a lot of similarities as well as differences and many points to ponder.

 

[extragreen]

many points to ponder.

One of those points is that you're an idiot for posting before thinking. Ponder that.

 

[KyMUfan]

Speaking of preferential treatment...

Executive compensation and changes to Sec. 162(m)

This article discusses Sec. 162(m)’s interaction with FASB ASC Topic 718, with examples illustrating their combined influence on book income tax expense and companies’ effective tax rates.

www.thetaxadviser.com

"Sec. 162(m), which dates to 1993,3 limits the deductibility of executive compensation to $1 million per “covered” executive."

AEP can't deduct executive compensation for federal income taxes, but since TVA is exempt from federal income taxes...

 

[extragreen]

Speaking of preferential treatment...

Executive compensation and changes to Sec. 162(m)

This article discusses Sec. 162(m)’s interaction with FASB ASC Topic 718, with examples illustrating their combined influence on book income tax expense and companies’ effective tax rates.

www.thetaxadviser.com

"Sec. 162(m), which dates to 1993,3 limits the deductibility of executive compensation to $1 million per “covered” executive."

AEP can't deduct executive compensation for federal income taxes, but since TVA is exempt from federal income taxes...

You're digging your hole deeper, you moron.

What other wholly govt owned entities pay federal income tax??

Why should the govt pay taxes to itself?

 

[herdfan06]

There are two shipping entities of similar size - Revenues of $87B vs $80B with both having approximately 500k employees. One CEO made $12.3MM last year while the other made $341k. One entity is FedEx. The other is the USPS which is also a quasi-government agency.

My employee stock would be far more valuable if it were based on revenue.

 

[KyMUfan]

My employee stock would be far more valuable if it were based on revenue.

Hmmm... I didn't make that argument but while we're at it:

AEP made $2.6B last year on revenues of $19.6B.

TVA made $1.1B on revenues of $12.3B.

Which is more efficient?

FedEx made $4.3B on its $87B in sales. The USPS lost $9.5B on its $80B in sales.

Which is more efficient?

BTW FedEx did this against competition from UPS and the USPS. AEP and TVA operate in regulated markets with little opportunity for competition and innovation.

 

[KyMUfan]

Interesting article on TVA. I know when I was involved in the coal industry TVA had a cumbersome fuel procurement process that that really hindered their competitiveness, but since they don't really have any competition...

https://www.downsizinggovernment.org/privatizing-tennessee-valley-authority

 

[extragreen]

AEP made $2.6B last year on revenues of $19.6B.

TVA made $1.1B on revenues of $12.3B.

Which is more efficient?

You're digging your hole deeper, you moron.

Does AEP manage the Tennessee River system, which includes flood control, navigation, and land management.
Does AEP work to reduce flooding of a river, keep the water clean, and make the river easier to travel?
Does AEP operate outdoor recreation areas along the Tennessee River?
Does AEP provide incentives and technical support for renewable energy projects?

Does AEP develop port facilities?

You're digging your hole deeper, you moron.