Silicon Valley Bank employees received bonuses hours before takeover
Law enforcement officials depart Silicon Valley Banks headquarters in Santa Clara, California on March 10, 2023.
Noah Berger | AFP | Getty Photographs
Silicon Valley Financial institution staff obtained their annual bonuses Friday simply hours earlier than regulators seized the failing financial institution, in keeping with individuals with information of the funds.
The Santa Clara, California-based financial institution has traditionally paid worker bonuses on the second Friday of March, mentioned the individuals, who declined to be recognized talking concerning the awards. The funds had been for work carried out in 2022 and had been in course of days earlier than the financial institution’s collapse, the sources mentioned.
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This 12 months, bonus day occurred to fall on SVB’s remaining day of independence. The establishment, within the throes of a financial institution run triggered by panicked enterprise capital buyers and startup founders, was seized by the Federal Deposit Insurance coverage Company (FDIC) round noon Friday.
On Friday, SVB CEO Greg Becker addressed staff in a two-minute video wherein he mentioned that he not made selections on the 40-year-old financial institution, in keeping with the individuals.
The dimensions of the payouts could not be decided, however SVB bonuses vary from about $12,000 for associates to $140,000 for managing administrators, in keeping with Glassdoor.com.
SVB was the highest-paying publicly traded financial institution in 2018, with staff getting a mean of $250,683 for that 12 months, in keeping with Bloomberg.
After its seizure, the FDIC provided SVB staff 45 days of employment, the individuals mentioned. The financial institution had 8,528 staff as of December.
A spokesman for the FDIC declined to touch upon the bonuses.