SVB Financial Proposed Bonuses as ‘Guise’ to Aid Sale, DOJ Says

SVB Financial Group’s plan to pay up to $12.5 million in bonuses to nine executives at its capital and credit investment arm is a “guise” to boost the unit’s sale price, the Justice Department’s bankruptcy watchdog said.

The bankrupt former parent of Silicon Valley Bank previously said the bonuses were necessary because of its “inability” to compensate executives at SVB Capital “through other means.” SVB Financial, which filed Chapter 11 in March, is exploring a sale of SVB Capital, its primary remaining asset, according to court documents.

The proposed incentive plan is vague and doesn’t include rigorous performance benchmarks, the ...