Cops depart Silicon Valley Banks headquarters in Santa Clara, California on March 10, 2023.
Noah Berger | AFP | Getty Pictures
Silicon Valley Financial institution staff obtained their annual bonuses Friday simply hours earlier than regulators seized the failing financial institution, in accordance with folks with information 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 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.
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 during which he stated that he not made choices on the 40-year-old financial institution, in accordance with the folks.
The scale 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 median of $250,683 for that yr, in accordance with Bloomberg.
After its seizure, the FDIC provided SVB staff 45 days of employment, the folks stated. The financial institution had 8,528 staff as of December.
A spokesman for the FDIC declined to touch upon the bonuses.