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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 Pictures

Silicon Valley Financial institution workers obtained their annual bonuses Friday simply hours earlier than regulators seized the failing financial institution, in keeping with folks 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 folks, who declined to be recognized talking in regards to the awards. The funds have been for work carried out 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 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 during which he stated that he now not made choices on the 40-year-old financial institution, in keeping with the folks.

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 workers getting a median of $250,683 for that 12 months, in keeping with Bloomberg.

After its seizure, the FDIC supplied SVB workers 45 days of employment, the folks stated. The financial institution had 8,528 workers as of December.

A spokesman for the FDIC declined to touch upon the bonuses.

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