Silicon Valley Bank Employees Receive Annual Bonuses Hours Before Government Takes Over

Silicon Valley bank employees received their annual bonuses on Friday just hours before regulators seized the failing bank, according to people familiar with the payments.

The Santa Clara, California-based bank has historically paid employee bonuses on the second Friday in March, said the people, who declined to be named when talking about the awards. The payments were made for work completed in 2022 and were made days before the bank collapsed, the sources said.

This year the bonus day fell on the last day of SVB independence. The institution, surviving bank runs fueled by panicked venture capitalists and startup founders, was seized by the Federal Deposit Insurance Corporation (FDIC) around noon on Friday.

On Friday, SVB CEO Greg Becker addressed workers in a two-minute video in which he said he no longer makes decisions at the 40-year-old bank, according to people.

The amount of the payout cannot be determined, but SVB bonuses range from $12,000 for employees to $140,000 for managing directors, according to Glassdoor.com.

SVB was the highest paid public bank in 2018, with employees earning an average of $250,683 for that year, according to Bloomberg.

Following his arrest, the FDIC offered SVB staff 45 days of work, people said. As of December, the bank employed 8,528 employees.

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