Silicon Valley Bank employees received bonuses hours before takeover
Cops depart Silicon Valley Banks headquarters in Santa Clara, California on March 10, 2023.
Noah Berger | AFP | Getty Photos
Silicon Valley Financial institution staff acquired their annual bonuses Friday simply hours earlier than regulators seized the failing financial institution, based on individuals with data of the funds.
The Santa Clara, California-based financial institution has traditionally paid worker bonuses on the second Friday of March, stated the individuals, who declined to be recognized talking concerning the awards. The funds have been for work accomplished in 2022 and had been in course of days earlier than the financial institution’s collapse, the sources stated.
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This 12 months, bonus day occurred to fall on SVB’s ultimate day of independence. The establishment, within the throes of a financial institution run triggered by panicked enterprise capital traders 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 by which he stated that he not made selections on the 40-year-old financial institution, based on 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, based on 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, based on Bloomberg.
After its seizure, the FDIC supplied SVB staff 45 days of employment, the individuals stated. The financial institution had 8,528 staff as of December.
A spokesman for the FDIC declined to touch upon the bonuses.