Employees at Silicon Valley Bank received their annual bonuses on Friday, just hours before regulators seized the failing bank, according to persons familiar with the payouts.
According to the persons speaking about the awards, the Santa Clara, California-based bank has traditionally paid employee incentives on the second Friday of March. According to the sources, the payments were for work completed in 2022 and were in the process just days before the bank’s demise.
Bonus day fell on SVB’s final day of independence this year. The Federal Deposit Insurance Corporation (FDIC) seized the institution at midday Friday, in the midst of a bank run sparked by scared venture capital investors and startup founders.
According to the persons, SVB CEO Greg Becker addressed employees in a two-minute video on Friday, saying that he no longer made decisions at the 40-year-old bank.
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The value of the rewards could not be determined, but according to Glassdoor.com, SVB bonuses vary from roughly $12,000 for associates to $140,000 for managing directors.
According to Bloomberg, SVB was the highest-paying publicly traded bank in 2018, with employees earning an average of $250,683 that year.
According to the sources, the FDIC gave SVB staff 45 days of work following the bank’s seizure. As of December, the bank employed 8,528 people.
The FDIC’s spokesman declined to comment on the awards.
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According to Bloomberg, SVB was the highest-paying publicly traded bank in 2018, with employees earning an average of $250,683 that year.
According to the sources, the FDIC gave SVB staff 45 days of work following the bank’s seizure. As of December, the bank employed 8,528 people.
The FDIC’s spokesman declined to comment on the awards.
