Bank Ex-CEO Refuses To Surrender $10 Million Compensation

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Bank Ex-CEO Refuses To Surrender $10 Million Compensation

May 26, 2023 | News | 0 comments

The ex-Silicon Valley Bank executive, who has faced the majority of the blame for the financial institution’s downfall, is unwilling to promise to relinquish any portion of the $10 million he received each year from the defunct bank.

During his appearance before the Senate Banking Committee on Tuesday, Greg Becker, the former CEO of SVB, attributed the March collapse of the company to extraordinary circumstances, interest rate increases, and adverse social media attention, rather than managerial errors. While Becker expressed willingness to collaborate with regulators in assessing compensation, he declined to commit to returning any portion of his earnings, despite facing persistent requests to do so.

Both Democrats and Republicans have expressed strong disapproval towards Becker due to his sale of $3.6 million worth of company stock using a trading plan, which occurred less than two weeks before the firm revealed substantial losses.

During the hearing on Tuesday, Becker asserted that the bank’s legal team had given approval for the stock sales. He further defended his compensation and stated that the bonuses received by specific employees for their 2022 performance, just before the bank was seized, were neither unusual nor expedited.

At the hearing, Scott Shay, former chairman of Signature Bank, likewise declined to pledge to return any portion of his compensation.

Legislators highlighted the fact that the bank failures resulted in the government’s fundamental deposit insurance fund losing billions of dollars, necessitating its replenishment by other financial institutions.

Pennsylvania Democrat John Fetterman criticized Republicans for proposing a work requirement for SNAP, the government’s food assistance program. He then questioned the lack of a similar working requirement following the sale of SVB by the FDIC, asking if there should be a work requirement after the bank is sold.