SVB said it had to pay bonuses just before the FDIC seizure

Silicon Valley Bank paid out annual bonuses to eligible U.S. employees on Friday, just hours before the bank was seized by the U.S. government, Axios has learned from multiple sources.

What you need to know: The bonuses were for work done in 2022 and were previously scheduled to be paid on March 10. This date ultimately coincided with the bank’s acquisition of the Federal Deposit Insurance Corporation.

  • Bonuses for employees in some other countries were scheduled for later this month, so they have not yet been paid.

Status: An unknown number of SVB employees were emailed by the FDIC on Friday evening, offering them employment with the remaining organization for the next 45 days.

  • The employees would be compensated 1.5x their normal wage, while hourly workers would receive 2x their normal wage for overtime.
  • An FDIC spokesperson tells Axios, “Without commenting on salaries, it is our standard practice to ask retained (sic) bank employees to assist with an orderly transition as part of our resolution process.”

Go deeper: This weekend is everything for SVB and its customers

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