- Silicon Valley Bank employees received their annual bonuses on Friday just hours before regulators took control of the troubled bank, according to people familiar with the payments.
- Those people said the payments were for work done in 2022 and were in the process days before the bank collapsed.
- On Friday, SVB CEO Greg Baker addressed workers in a two-minute video saying he no longer makes decisions at the 40-year-old bank, according to sources.
Police officers leave the Silicon Valley Banks headquarters in Santa Clara, California on March 10, 2023.
Noah Burger | AFP | Getty Images
Silicon Valley Bank employees received their annual bonuses on Friday just hours before regulators took control of the troubled bank, according to people familiar with the payments.
Historically, the Santa Clara, Calif., bank has paid bonuses to employees on the second Friday in March, said the people, who declined to be identified talking about the awards. The sources said that the payments were for works that were completed in 2022 and were ongoing days before the collapse of the bank.
This year, Bonus Day fell on SVB’s recent Independence Day. The Federal Deposit Insurance Corporation (FDIC) took over at midday Friday the institution, which was in the midst of a bank run sparked by panic investors in venture capital and startup founders.
On Friday, SVB CEO Greg Baker addressed workers in a two-minute video saying he no longer makes decisions at the 40-year-old bank, according to People.
The size of payments cannot be determined, but SVB bonuses are ranges From about $12,000 for partners to $140,000 for principals, according to Glassdoor.com.
SVB was the highest paying publicly traded bank in 2018, with employees earning an average $250,683 That year, according to Bloomberg.
After its takeover, the FDIC offered SVB employees 45 days off work, the people said. The bank had 8,528 employees as of December.
An FDIC spokesperson declined to comment on bonuses.
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