News | Sunday, 22 March 2009

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Razzett declines to reveal details of ‘excessive’ CEO salary

David Darmanin
The Razzett tal-Hbiberija, a non-profit charity foundation currently undergoing a controversial merger with the Eden Foundation, has categorically refused to divulge details about its top management’s salary packages.
Queries were raised after benefactors of the merger between the two foundations – shortly to be renamed as one organisation – expressed concerns regarding the “excessive” wage and bonuses of Razzett’s CEO, Nathan Farrugia.
Together, the merged foundations shell out more than €35,000 annually to cover Farrugia’s basic salary. However, Razzett chairman Paul Stoner claims that its management earns 30 to 40% less than people working in similar jobs in the public or private sector.
Sources told this newspaper that when counting perks and bonuses, Farrugia has an earning potential of €47,000 per year in his contract. But Stoner neither confirmed nor denied this information: hiding behind confidentiality on “internal governance” matters.
“We want to reassure the public that the Razzett has always adhered to strict corporate governance rules ensuring that our activities follow best practices both on recruitment matters and on subcontracting methods,” Stoner said, falling short of revealing details on the salary package of his CEO.
“Rest assured that the entire management team earns salaries that are between 30 and 40% less than those paid in private or public enterprise for like-with-like roles,” he added.
But Scale 1 employees in the public service, who are the highest earners, are paid a maximum of €36,000 – with performance bonuses ranging from 10 to 35% of their annual package.
“Personally, I find it strange that the media would be interested in the salary structure of an NGO,” Stoner told MaltaToday. “Traditionally – and the Razzett is no exception – as employers, NGOs find that a major difficulty in getting quality staff to work for our cause lies in convincing these highly talented and motivated individuals to work extremely long hours for non-competitive remuneration.”
When Farrugia was contacted on the matter, he referred us to the foundation’s chairman for official replies.
Razzett tal-Hbiberija, which recently laid plans to merge with Eden Foundation in order to curb its administration costs, is an independent organisation relying on the generosity of public donations. The charity also charges a nominal fee to family members of people with disability benefiting from reputable therapeutic and educational services it offers.
The NGO undertakes several fund-raising initiatives, turning over around €3 million per annum.
The merger of the two organisations in December last year had stirred up controversy from the start, as Eden’s founder, Josie Muscat, publicly stated that the decision had been taken against his will. This was followed by the resignation of trustee Joe Bugeja, as well as Br Martin Borg, Muscat’s successor as Eden Foundation President.
Farrugia, who has voiced his hope for the co-operation of stakeholders in the merge, is the key figure heading the intricate transition process for the two institutions to unite.

ddarmanin@mediatoday.com.mt

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