A former top aide to Joseph Muscat has in the “past weeks” decided to take a salary reduction that will see him earn a €105,000 basic salary, plus perks.
Kurt Farrugia was parachuted into the role of Malta Enterprise CEO in 2019 on a €105,000 salary with €5,000 annual increments, in what was described as a “highly unique” and one-sided contract.
Months later, as the COVID-19 pandemic brought business to a standstill, Farrugia had publicly stated that he will do his bit by taking a pay cut.
Documents on the financial packages of government CEOs tabled in parliament last week, however, show his basic salary has actually risen from €105,000 in 2019 to €115,000 in 2022.
Questioned by Times of Malta about what had become of his pay cut pledge, Farrugia said that in 2020-2021, when he made the statement, he took a €5,000 salary cut. This amounts to a forfeiture of the €5,000 annual increment.
“During the last year, I was paid according to my contract, which is public,” Farrugia said.
He added that “in the past weeks”, he has communicated his decision to reduce his salary come August, reverting to a €105,000 basic pay and forfeiting the annual €5,000 increments envisaged in the original contract.
“Therefore, my basic salary will revert to €105,000 without further increments,” Farrugia said.
€5,000 allowance, car, 20% performance bonus
Apart from the basic salary, Farrugia is also entitled to a €5,000 disturbance allowance, use of a fully expensed car and communication equipment, a 20 per cent performance bonus on top of his basic pay, as well as health and life insurance.
During the last year, I was paid according to my contract, which is public
Farrugia’s role as CEO of the government business promotion agency did not stop him from playing an active part in Labour’s election campaign earlier this year.
He led the government’s communications team from 2013, when the Labour Party rose to power, until July 2019, when he was appointed CEO of Malta Enterprise.
Farrugia’s contract sees him earn almost double the pay Prime Minister Robert Abela gets.
Average of €78,500 per CEO
Documents tabled in parliament show that the Energy and Enterprise Ministry, under whose remit Malta Enterprise falls, has several other high-earning CEOs.
Enemalta CEO Jonathan Cardona was put on a package of €115,000, plus perks, while the head of Petromal earns a basic salary of €100,000. Enemed chief Kevin Chircop’s basic salary sees him earn €102,000.
The total basic wage bill for the heads of the 14 entities under minister Miriam Dalli’s remit clocks in at €1.1 million, excluding perks, or an average of €78,500 per CEO.