Police officers leave Silicon Valley Bank’s headquarters in Santa Clara, California on March 10, 2023.
Noah Berger | AFP | beautiful pictures
Silicon Valley Bank employees received their annual bonus on Friday just hours before regulators seized the bankrupt bank, according to people with knowledge of the payments.
The Santa Clara, California-based bank has a history of paying employees bonuses on the second Friday of March, the people, who spoke on condition of anonymity, said of the award. The sources said the payments were for work done in 2022 and were processed days before the bank’s collapse.
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This year, the bonus date coincides with SVB’s last independence day. The institution, in the throes of a run the bank triggered by panicking venture capitalists and startup founders, has seize by the Federal Deposit Insurance Corporation (FDIC) around noon on Friday.
On Friday, SVB CEO Greg Becker spoke to workers in a two-minute video in which he said he no longer makes decisions at the 40-year-old bank, according to sources. of people.
The size of the payouts cannot be determined, but the bonus SVB limit from about $12,000 for associates to $140,000 for executives, according to Glassdoor.com.
SVB was the highest paid publicly traded bank in 2018, with employees receiving an average $250,683 for that year, according to Bloomberg.
After the seizure, the FDIC asked SVB employees to work for 45 days, the people said. The bank had 8,528 employees as of December.
A spokesman for the FDIC declined to comment on the bonus.
