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 Pictures
Silicon Valley Financial institution staff acquired their annual bonuses Friday simply hours earlier than regulators seized the failing financial institution, in accordance with 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 had been for work completed in 2022 and had been in course of days earlier than the financial institution’s collapse, the sources stated.
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This yr, 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 employees in a two-minute video wherein he stated that he now not made choices on the 40-year-old financial institution, in accordance 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 accordance with Glassdoor.com.
SVB was the highest-paying publicly traded financial institution in 2018, with staff getting a mean of $250,683 for that yr, in accordance with 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.