Salary increase for Central Bank governor was due to 'anomalies', ministry says

A remuneration increase within the post of Central Bank governor was introduced in order to maintain relativity between the salaries of the governor and deputy governors, the finance ministry has said.

As clarified in a PQ today, Minister for Finance Clyde Caruana explained that a partial increase was necessary in order to address anomalies between the remuneration of the deputy governors with the Central Bank and of chief officers within the MFSA..

"In 2019, the Central Bank notified the Minister of Finance and Prime Minister of anomalies that had arisen in recent years between the remuneration of the Central Bank's deputy governors and chief officers of the MFSA. The assessment of this situation was completed in early 2020."

The involved entities agreed that the anomoly would be remedied by a partial increase within the salary, while full parity with the financial package granted to the MFSA chief officer would be reached in the following year, being 2021.

"The increase of the governor's salary was made to maintain the relativity between the remuneration of the governor and the deputy governors."

Two weeks ago it was revealed that Edward Scicluna, who had been finance minister at the time of the remuneration increase, gave an €11,000 annual salary increase to his predecessor at the Central Bank, months before taking up the role himself. 

Scicluna resigned from his post as finance minister on 19 November. His resignation set the ball rolling for a cabinet reshuffle, that saw co-opted MP and former OPM chief of staff Clyde Caruana take on the ministerial position. 

Government quickly proposed Scicluna for the position of Central Bank governor. The previous governor, Dr. Maro Vella, was subsequently appointed as Special Commissioner for Economic, Financial and Trade Relations with the United Kingdon.

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