The highest-paid federal employee, Jeff Lyash, announces retirement amid renewed scrutiny over his $10.5 million salary.
At a Glance
- Jeff Lyash, CEO of Tennessee Valley Authority (TVA), to retire from $10.5 million per year position
- President Trump previously criticized Lyash’s salary as “ridiculous” and vowed to fire him
- TVA officials claim retirement was planned, not due to political pressure
- Lyash’s high salary sparked bipartisan concerns about executive pay in public agencies
- Elon Musk leading initiative under Trump administration to reduce federal spending
Lyash’s Retirement and Salary Controversy
Jeff Lyash, the CEO of the Tennessee Valley Authority (TVA) and the highest-paid federal employee with an annual compensation of $10.5 million, has announced his retirement. The move comes amid renewed scrutiny from President Trump over large federal salaries, particularly Lyash’s “ridiculous” income. During his first term, Trump had vowed to remove Lyash from his position, stating, “we’re getting rid of him in one form or another. Either the board’s gonna do it, or we’re gonna do it, but he’s gone.”
Despite speculation that Trump’s criticism may have pushed Lyash into retirement, TVA officials maintain that this move was part of a previously envisioned plan. TVA Spokeswoman Melissa Greene responded with a firm “The answer is no” when asked if the retirement was due to pressure from Trump’s administration. According to Greene, Lyash had expressed his intention to retire to the TVA Board of Directors in 2019 and began discussions about it last fall.
The Tennessee Valley Authority, a legacy of New Deal infrastructure projects, manages hydroelectric dams and nuclear power plants. It has come under fire not only for Lyash’s salary but also for the high compensation of other top executives, with several earning millions annually. This has raised concerns among both Republicans and Democrats about the justification of significant pay scales for executives within public agencies, especially those serving economically challenged regions.
The controversy surrounding TVA salaries extends beyond Lyash, too, with critics questioning the appropriateness of such high pay for a public agency. Trump previously stated that Lyash should earn no more than $500,000 annually and criticized potential exit packages. However, Lyash’s subordinates have defended his compensation by comparing it to typical utility executive salaries in the private sector.
As part of the ongoing efforts to address federal spending, Elon Musk is leading an initiative under the Trump administration to reduce costs. Musk has already revealed that he is on track to begin saving $4 billion per day.
