BOV CEO Charles Borg.Bank of Valletta is seeking a chief executive officer to take over from incumbent Charles Borg, whose three-year term expires on December 31.
The bank released the news through a company announcement – a first for this position – saying that the board of directors would issue a call for applications for bank executives and external candidates.
The process is being given added accountability through the appointment of KPMG as “observers to ensure objectivity”.
BOV has only had two chief executive officers in its history as prior to that the chairman was appointed on an executive basis.
That changed under Roderick Chalmers, who decided to create a CEO position in 2004, changing his chairman’s role to a non-executive one.
Tonio Depasquale was appointed after a local and international call for applications. He retired in December 2011 and was succeeded by Mr Borg.
In the case of Mr Borg there was no call for applications and he was appointed by what BOV described as “a comprehensive evaluation and consultative process” carried out by a special board sub-committee.
Sources said the company announcement came as a bolt from the blue. There was considerable speculation as to whether Mr Borg would re-apply for the post but sources familiar with the bank had been awaiting his ouster ever since John Cassar White was appointed chairman by the majority shareholder, the government, following the election.
Mr Chalmers and his successor Frederick Mifsud Bonnici were specifically appointed as non-executive chairmen but the appointment of Mr Cassar White was that of “chairman” without the company announcement specifying whether it was an executive or non-executive role.
Mr Borg declined to comment when contacted. In answer to questions Mr Cassar White said the board felt it was best to issue a company announcement in order to avoid speculation and rumors. The regulators were informed about the decision.
“When a contract of a senior executive expires, the Board has various options and one of them is to make a call for applications to which anyone including the present CEO can apply,” he said.