Fired CEO reinstated in €92,000 job, months after golden handshake

Less than a year after receiving a €142,000 golden handshake from state funds and stepping down as CEO of Infrastructure Malta, Ivan Falzon has been appointed CEO of the Gozo Regional Development Authority (GRDA) under a new government contract worth €92,000 annually.

In July 2024, The Shift reported that Falzon, who had led the national road agency for two years, had parted ways with the newly appointed Transport Minister, Chris Bonett, after a disagreement over solutions to Malta’s persistent traffic problems.

Falzon acknowledged the difference in views and confirmed that he had resigned following what he described as an “amicable separation” with the Minister.

It later emerged that Falzon had secured an 18-month severance package that included a performance bonus despite not having completed that period of work. The payout stemmed from a contract he had negotiated with the government prior to accepting the role.

Following a short hiatus, Falzon was brought back onto the public payroll last May.

He was directly appointed CEO of the GRDA—a satellite entity under the Gozo Ministry, by Minister Clint Camilleri. The GRDA has limited executive authority and operates largely as an extension of the Ministry itself.

Falzon replaces former CEO Mario Borg, who has since been promoted to Permanent Secretary of the Ministry.

According to his new contract, obtained via a Freedom of Information request, Falzon will earn €92,000 annually, closely matching his previous salary at Infrastructure Malta.

In addition to his base salary, he will receive various benefits, including performance bonuses, project execution incentives, communications support, reimbursement of expenses, and transport allowances.

Unlike his previous contract, this one does not include a golden handshake clause in the event of resignation or termination.

Falzon has held a series of senior government positions since 2013. He previously served as Chief of Staff to former Parliamentary Secretary Franco Mercieca and was also CEO of Mater Dei Hospital and the Water Services Corporation.

Following Falzon’s departure from Infrastructure Malta, Transport Minister Chris Bonett appointed Steve Ellul—a former unsuccessful Labour Party MEP candidate—as his replacement. Ellul’s new role comes with an annual salary of €125,000.