Bank of Valletta planning to replace CEO Rick Hunkin

Bank of Valletta’s first foreign chief executive, Rick Hunkin, is expected to leave later this year after the bank decided not to renew his contract, MaltaToday is informed.

Hunkin was head-hunted two years’ ago and last year’s remuneration report revealed how he was paid a total of €459,000 in salaries and bonus.

The former Northern Rock executive started his term at BOV on 1 January 2020 just before the COVID-19 pandemic struck.

A spokesperson for BOV told MaltaToday that Hunkin’s contract expires “in the course of 2022” and the bank is planning his succession.

“The bank is proceeding in line with good governance practices in terms of succession planning and execution, including the timely identification of the best available talent for the role from within and outside the bank,” the bank said.

However, sources close to the bank told MaltaToday Hunkin’s replacement is likely to be a Maltese national.

During his term, Hunkin roped in UK consultants AJ Belt Consultants to assist in the bank’s transformation strategy to create a lower risk profile and invest in technological innovation.

MaltaToday had revealed in April last year that AJ Belt were paid a daily rate of €1,750 and €250 allowance, which BOV had said were commensurate with the fees charged by local and international consultants in the area of specialisation.

However, last December The Shift revealed that BOV is paying seven foreign consultants between €2,000 and €1,500 each per day, raising eyebrows over the millions the bank was spending.

The news portal said the consultants were all close acquaintances of Hunkin, dating back to connections made at British and other financial institutions where the BOV CEO used to work before coming to Malta.

The bank defended the choice of consultants saying remuneration was consistent with market rates and they were chosen to fill gaps in specialisation that were unavailable locally.