According to unnamed sources, Silicon Valley Bank UK (SVB UK) has given its employees millions of pounds in bonuses just days after it was bailed out by global banking giant HSBC for just £1.
Based on unnamed sources in a Sky News report on March 18, payments to SVB UK staff and senior executives were “earlier this week” by HSBC UK Bank, which acquired SVB UK for GBP1 (US$1.22) on 13 March. reportedly signed.
It was reported that it was “uncertain” how much bonuses were awarded to SVB UK’s CEO, Erin Platts, or her senior colleagues, while sources described the bonus pool as “modest”, with a total of “between £15m and £20m” (around 18.26m). to $24.35 million).
An insider reportedly noted that bonuses “won’t be paid out this week” if SVB UK was “not bought on its own”, while an insider noted that stocks held by senior executives and other employees “became worthless” with SVB UK’s near collapse. pulled.
Additionally, it said the bonus payments were “a sign of confidence in HSBC’s talent base” at SVB UK, saying it would honor “previously agreed payments” to “retain key personnel”.
SVB UK previously tweeted on 17 March that it was “happy” to be a part of HSBC after 14 years of supporting and growing the UK’s innovative economy.
With 14 years of supporting & growing the UK’s innovation economy, @SVB_UK is delighted to now be part of @HSBCjoining a successful global organization to fuel our client’s growth and ours. #UKTech #SVBUK #Startups #HSBChttps://t.co/MNUl57S33Z
— SVB UK (@SVB_UK) March 16, 2023
This decision comes after the Bank of England suspended SVB UK’s operations on March 10, stating that it has “limited assets” and no “critical functions” that support the financial system.
In the statement, it was stated that SVB UK will “stop making payments or accepting deposits”, while the BoE will apply to the court to put the SVB in the “Bank Insolvency Procedure”.
Meanwhile, SVB’s banking arm in the United States became state-owned, and holding company SVB Financial Group filed for Chapter 11 bankruptcy protection on March 17 while seeking buyers for its other assets.
William Kosturos, head of restructuring at SVB Group, said the Chapter 11 process will allow SVB Financial Group to “maintain its value while evaluating strategic alternatives for its valuable businesses and assets”.
Kosturos emphasized that SVB Capital and SVB Securities will continue their activities, managed by their own independent teams.