Will someone please enlighten me on what a person does in his job that "entitles" them to make $5.9 million annually? In my opinion, many in management positions at TVA are overpaid. Grossly overpaid.
What does William D. Johnson do to deserve that kind of money? Doesn't taxpayer money pay these outrageous salaries? I believe that as an American taxpayer, I have the right to say that if you are in a government position and your salary has the word million in it.....you should be ashamed/
Nobody, and I do mean nobody, deserves that kind of money.
And we wonder why our economy is so screwed up.
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Many people including myself share Ken Snyder's chagrin at the TVA CEO Johnson's reported $5.9 million annual salary. At first glance it seems preposterous that a single person can command that kind of pay.
But when you note that the head football coach at the University of Alabama, Nick Saban, makes $5.6 million in annual compensation, Mack Brown (Texas) makes $5.4 million, and Bob Stoops (Oklahoma) makes $4.6 million, it puts that TVA top dog's salary in a slightly different perspective. Dig a little deeper, and you'd find that the Alabama sports revenues (all sports) stand at $143.4 million while TVA's reported revenues in 2012 were $11.2 billion. Yes, that's billion. It's safe to say that TVA probably spends more yearly for goods and services than the top three football coaches' salaries combined.
Of course, being one of the largest electric utilities in the world and providing electric power throughout a seven-state region pales in significance to having a winning football season and a championship ring.
The TVA CEO's salary is paid from power revenues, not tax money.
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First off, let's take a look at the salaries of the top 10 CEO's of utility companies. William Spence is the CEO of PPL Corp. He made $5.1 million in 2011. James Rogers of Duke Energy made $8.78 million. Anthony Alexander of First Energy Corp made $18.3 million. I can keep going but the $5.9 million that is paid to William Johnson is well within the standard for CEO salaries, if not on the low side considering he is responsible for $11.2 billion in revenue.
In order for TVA to stay viable and running without going bankrupt they need to have the best person running it. That takes a comparable salary to other utility CEO positions for the best candidate to even consider the position. For TVA to attract the best and most talented people to work for them they must be competitive in the market place for employees. If they are not the best, candidates will go to private utilities.
If you suggest TVA reduce all salaries, then what kind of people will they attract for the jobs they need filled. Offer well-paying jobs and attract the best or low salaries and attract mediocre talent. TVA offers some if the lowest energy costs for the Tennessee Valley in the country and you benefit from that. The "overpaid" CEO and employees are keeping your cost down.
Also your tax dollars do not go to paying their salaries. They sell electricity. That pays their salaries.
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It seems that some feel high salaries are justified because X, Y, Z, companies pay their top people X number of dollars it is only fair to pay TVA's top dog a big, big salary. May be okay if measurable goals that can be measured are set and met by the top people. TVA gives bonuses to top leaders that do nothing to reach projected goals.
Now others use the old, old argument that no taxpayer dollars are used. Seems to me every ratepayer is also a taxpayer and the money comes from the same pocket. How much income is projected and at the end of the year it is reached a bonus given, say 10 percent, but if missed deduct 10 percent from pay. Would work for me.
N.D. Kennedy Sr.