TVA statement – CEO compensation

November 16, 2012

The board of directors reviewed the fiscal year 2012 annual compensation for Tom Kilgore.

“TVA compensation is based on market data and the data shows that TVA’s CEO remains near the bottom in total compensation among all utilities,” TVA Chairman Bill Sansom said.  “In 2012, TVA performed well at a time of slow economic recovery, but there were other challenges as well. While our business metrics were sound, the overall cultural health of the organization and hard spots in our nuclear portfolio were below expectations. Adjustments were made to the CEO’s annual compensation plan with a portion of his performance incentive delayed until the successful completion of Watts Bar Nuclear Unit 2 on time and on budget.”

“As a board, we know TVA must hire and retain people with experience to operate and maintain a complex power system,” Sansom said.  “TVA operates one of the nation’s largest public utility systems and competes with other investor owned utilities for talented people to sustain operational excellence,” he said.