SVB Financial Group has asked for bankruptcy court permission to implement a program that would award up to $12.6 million in bonuses to nine executives involved with its venture capital and credit investment arm.
Silicon Valley Bank’s bankrupt former parent is aiming to implement a plan that would allow it to pay incentive bonuses to the executives if they meet various performance metrics, the company said in a motion filed Tuesday with the US Bankruptcy Court for the Southern District of New York.
The nine executives became employees of First-Citizens Bank & Trust Co. when it acquired the subsidiary bank in March. However, they are key to managing assets under the SVB Capital business, which remain property of SVB Financial, according to the motion.
The proposed key employee incentive program is part of a plan to bring the executives back over to SVB Financial as it works to eventually sell or reorganize SVB Capital, according to the filing.
SVB Financial filed for Chapter 11 after its subsidiary bank was seized by regulators amid a run on withdrawals.
SVB Financial said in court papers that the bonus program is “necessary in light of the Debtor’s inability to compensate the KEIP participants through other means.”
The case is SVB Financial Group, Bankr. S.D.N.Y., No. 23-10367, motion 7/25/23.
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