Business NEWS

Outrageous Move, TVA Raises CEO Tom Kilgore’s Compensation

By Amarendra Bhushan for CEOWORLD Magazine Updated:October 31, 2008

That is alot of electricity. I think it’s outrageous, it brings about the old statement, “The rich get richer, while the poor get poorer”. No wonder why country is in the shape it’s in!!! I think, if you got rid of the CEO all together and continued business as usual, nothing would change except the rates would go down. It is amazing that these CEO’s think they are worth so much and that we have allowed them to be paid so much while more and more people are losing their jobs and becoming homeless.

Tennessee Valley Authority President Tom Kilgore will be eligible to boost his earnings by more then 20 percent in the next year under a compensation plan adopted here today. Tennessee Valley Authority directors approved an executive compensation package to allow Mr. Kilgore to earn up to $3.27 million in the current fiscal year.

Mr. Kilgore earned about $2.2 million of the $2.7 million he was eligible to earn during fiscal 2008, which ended Sept. 30. TVA director Dennis Bottorff, chairman of the utility’s finance committee, praised Mr. Kilgore’s performance at TVA and said he will be paid “very conservatively” compared with his peers in the utility industry.

A study by compensation consultants Watson Wyatt recommended an even higher pay level for Mr. Kilgore to help bring TVA pay more in line with comparable investor-owned electric utilities.

Under the plan adopted today, Mr. Kilgore’s total pay would still be about 45 percent below the average CEO pay of comparable utilities, according to Watson Wyatt.

Tom Kilgore
President and Chief Executive Officer

Tom Kilgore was named President and Chief Executive Officer of the Tennessee Valley Authority in October 2006, having served as Acting CEO since March 2006. He was appointed President and Chief Operating Officer in March 2005.

He is responsible for managing all aspects of TVA, including power production, transmission, power trading, resource management programs, and economic development, as well as TVA’s corporate functions. He heads TVA’s Executive Committee and chairs its Business Council.

Kilgore came to TVA from Progress Ventures, where he served as president and chief executive officer. Progress Ventures is a subsidiary of Progress Energy. The company has a diverse portfolio of energy-related businesses in fuel extraction, transportation, energy marketing, energy trading, and other areas.

Kilgore previously served as president and chief executive officer of Oglethorpe Power Corporation in Georgia. He joined Oglethorpe in 1984 and held numerous management positions, becoming president and chief executive officer in 1991 and serving in that capacity until 1998. Prior to joining Oglethorpe he worked for Arkansas Power and Light Company and for the U.S. Department of Defense at Pine Bluff Arsenal in Arkansas.

Kilgore serves on the board of directors of the American Museum of Science and Energy Foundation and has served on the boards of directors of the Georgia Chamber of Commerce, the Electric Power Research Institute, and the United States Council for Energy Awareness. He has also been a member of the industry advisory board of the American Society of Mechanical Engineers.

A native of Alabama, Kilgore earned a bachelor’s degree in mechanical engineering from the University of Alabama and a master’s degree in industrial engineering from Texas A&M University. He served in the U.S. Army from 1970 to 1972. In 2002, he was inducted into the State of Alabama Engineering Hall of Fame.

Like this article! ‹ A review on NYSE Euronext Third Quarter 2008 Financial Results Kevin Kennedy to Join Avaya Inc. as President and Chief Executive Officer ›
Share this Post: Get It Delivered To Your Inbox