SVB changes executive bonuses after DOJ pushback: report on August 23, 2023 at 12:24 am Business News | The Hill

SVB Financial Group, the bankrupt former parent of Silicon Valley Bank, reportedly said it is changing its executive bonuses after pushback from the Department of Justice, according to a Bloomberg report.

James Bromley of Sullivan & Cromwell said Tuesday bonus benchmarks for nine leaders of SVB Capital, the capital and investment arm of SVB Financial Group, are now more “substantive and focused,” Bloomberg reported.

The total payout for executives at lower performance benchmarks was reduced by $500,000, Bromley reportedly said, while the top level of payouts increased by $500,000 as well. This comes after the U.S. Trustee Program, the nation’s “bankruptcy watchdog” argued the plan’s metrics for bonuses were not rigorous enough, Bloomberg reported.

In a court filing Tuesday in the U.S. Bankruptcy Court in the Southern District of New York, a bankruptcy judge authorized SVB Financial Group to implement a “key employee incentive plan.”

The changes come amid the Justice Department’s probe into the fall of Silicon Valley Bank, the largest bank failure since the financial crisis of 2008. The investigation is looking into actions of the bank’s senior executives and involves federal prosecutors in California and prosecutors in fraud causes, the Associated Press reported.

Shortly after the collapse of Silicon Valley Bank in March, SVB Financial Group filed for Chapter 11 bankruptcy.

​Business, Silicon Valley Bank, Silicon Valley Bank collapse, Silicon Valley Bank failure SVB Financial Group, the bankrupt former parent of Silicon Valley Bank, reportedly said it is changing its executive bonuses after pushback from the Department of Justice, according to a Bloomberg report. James Bromley of Sullivan & Cromwell said Tuesday bonus benchmarks for nine leaders of SVB Capital, the capital and investment arm of SVB Financial Group,…

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