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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 line with individuals with data of the funds.

The Santa Clara, California-based financial institution has traditionally paid worker bonuses on the second Friday of March, mentioned the individuals, who declined to be recognized talking in regards to 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 mentioned.

This 12 months, bonus day occurred to fall on SVB’s closing 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 through which he mentioned that he now not made selections on the 40-year-old financial institution, in line with the individuals.

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 line with

SVB was the highest-paying publicly traded financial institution in 2018, with workers getting a median of $250,683 for that 12 months, in line with Bloomberg.

After its seizure, the FDIC provided workers 45 days of employment, the individuals mentioned. The financial institution had 8,528 workers as of December.

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