Insider sources reportedly described the bonus pool as modest, adding that the stock held by senior execs had been rendered worthless following Silicon Valley Bank UK arms near-collapse. 3479 Total views 41 Total shares Listen to article 0:00 News Own this piece of history
Collect this article as an NFT Silicon Valley Bank UK (SVB UK) has granted millions of pounds in employee bonuses, just days after it was rescued by global banking giant HSBC for just 1 British pound, according to unnamed sources.
In a March 18 Sky News reportciting unnamed sources, it was reported that payouts to SVB UK staff and senior executives were signed off earlier this week by HSBC UK Bank the institution which acquired SVB UK for 1 British pound ($1.22) on March 13.
It was reportedly unclear how much had been awarded to SVB UKs CEO, Erin Platts, or her senior colleagues, however, the sources described the bonus pool as modest and said that it totaled between 15m and 20m (approximately $18.26 million and $24.35 million).
While the insiders reportedly noted that if SVB UK had not been acquired solvently, the bonuses wouldnt have been paid this week. One insider reportedly pointed out that the stock held by senior executives and other employees had been rendered worthless by SVB UKs near-collapse.
Related: Failed tech bank SVB held over $5B for prominent crypto VCs: Report
Another insider reportedly added that the bonus payments were a signal of HSBCs confidence in the talent base at SVB UK and were to honor previous agreed payments in an effort to retain key staff.
SVB UK previously stated in a March 17 tweet that it was delighted to now be part of HSBC after 14 years of supporting and growing the UKs innovative economy.
With 14 years of supporting & growing the UK’s innovation economy, @SVB_UK is delighted to now be part of @HSBC, joining a successful global organisation to fuel our client’s growth and ours. #UKTech #SVBUK #Startups #HSBChttps://t.co/MNUl57S33Z SVB UK (@SVB_UK) March 16, 2023
This comes after the Bank of England (BoE)shut down the operations of SVB UK on March 10, stating that it had a limited presence and no critical functions supporting the financial system.
The statement declared that SVB UK would stop making payments or accepting deposits, as the BoE intended to apply to the court to place SVB into a bank insolvency procedure.
Meanwhile, SVBs United States banking arm has been taken into government ownership. Its holding company, SVB Financial Group, filed for Chapter 11 bankruptcy protectionon March 17 as it seeks buyers for its other assets.
SVB Groups chief restructuring officer, William Kosturos, stated that the Chapter 11 process will allow SVB Financial Group to preserve value as it evaluates strategic alternatives for its prized businesses and assets.
Kosturos emphasized that SVB Capital and SVB Securities will continue to operate, led by their respective independent teams. #HSBC #Bankruptcy #Bank of England #Report #United Kingdom #Regulation #SVB
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