Silicon Valley Bank, a major California-based financial institution, was shut down on March 10, as confirmed by the California Department of Financial Protection and Innovation. But its employees got bonuses just before the Federal Deposit Insurance Corporation (FDIC) takeover.
In the middle of Friday, March 10, employees and managers of Silicon Valley Bank (SBV) received their annual bonuses before the California regulator seized the bank.
Silicon Valley Bank (SVB) had 17 branches in California and Massachusetts and 8,528 employees in December. According to the knowledgeable employees, the bonuses were for the works of 2022 last year, which the bank awarded before California regulators took over.
Silicon Valley Bank’s Chief Executive Officer (CEO) Greg Becker briefed employees on Friday in a two-minute video stating that he no longer made decisions at ‘the 40-year-old bank’.
Although, the value of the awards has yet to be confirmed because the FDIC’s spokesperson did not elaborate on the bonuses., SVB bonuses vary from roughly $12,000 for employees to $140,000 for managing directors, according to the paper Glassdoor.com.
According to related people, the Federal Deposit Insurance Corporation (FDIC) announced 45 days of paid employment at 1.5 times their salary after taking over the bank.
FIDC will soon announce the benefits to the employees who have been enrolled by SVB. All the benefits and healthcare details will be provided by SVB.
Also read: Silicon Valley Investors Sequoia, Paradigm Invest $1.15 Billion in Citadel Securities
