Retiring BOV chief executive gets €270,000 send-off

Bank of Valletta chief executive Charles Borg has applied for early retirement after withdrawing his application to be reconfirmed as CEO.

His contract as CEO expires on 31 December this year.

Bank sources told MaltaToday that Borg will get a tax-free, early retirement payment of €270,000, but he will be retained as a consultant with the bank for one year at a fee of €30,000.

He will also continue to serve as director on three bank subsidiaries, with an additional annual remuneration of €25,000.

If Borg had opted to stay on, stepping down from CEO and returning to his former post of chief officer he would have still received a hefty salary of €90,000 plus any increases that would have been granted as a result of a new collective agreement.

Borg, who was appointed CEO in 2011, joined the state-owned bank in 1981. In his previous appointment of Chief Officer he was in charge of Financial Markets & Investments.

On his watch Bank of Valletta was fined by the Malta Financial Services Authority (MFSA) the maximum under the applicable legislation of €203,150 for breaching licence conditions over the sale of the La Valette property fund to clients, which lost up to €80 million in investments.