Consultant to review utility CEO pay after Trump criticism

NASHVILLE, Tenn. (AP) — The Tennessee Valley Authority has hired a new independent consultant to take a fresh look into its executive compensation after President Donald Trump earlier this month blasted the CEO as being “ridiculously overpaid," the federal utility's board chairman said Thursday.

At a virtual meeting, the board announced that hiring a new consultant, Erin Bass-Goldberg of FW Cook, would be one of multiple steps taken after Trump put the agency in his crosshairs. Trump fired the former board chairman and another board member earlier this month and called for the CEO's replacement and the position's salary to be capped at $500,000.

The board also provided more detail about plans to reverse course on the hiring of foreign labor for information technology jobs, which piqued Trump's interest enough that in early August he invited the workers who would be replaced to the White House.

With the pay-scale review in place, CEO Jeff Lyash could have a breather from Trump’s wrath. Results are expected before TVA's November board meeting.

The TVA Act in federal law already requires hiring an independent consultant to review executive compensation, Board Chairman John Ryder told reporters. But the utility is switching up firms to provide a “new set of eyes on the problem,” he said.

“We have reported that back to the White House and the indications we have is that we are approaching this in the right way,” Ryder said of the pay review.

In his first six months on the job, Lyash’s compensation was $8.1 million, making him the highest paid federal employee, albeit at an organization that doesn’t use taxpayer funding and relies almost entirely on electric rates.

The pay complaint isn't indicative of Lyash's performance, Ryder said, adding that the...