Government won’t bail out Silicon Valley Bank, which paid workers bonuses hours before collapse
By Bruce Golding
March 12, 2023 12:19pm
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Silicon Valley Bank employees received their annual bonuses shortly before the bank was seized Friday, NBC News reported late Saturday.
The bank traditionally hands out bonuses for the prior year’s work on the second Friday in March, and the payments had been in the works for days, sources familiar with the matter told CNBC.
It’s unclear how much cash was distributed, but NBC said the bonuses likely ranged from $14,000 each for associates to $140,000 apiece for managing directors, based on figures posted on the Glassdoor website.
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Can anyone say “clawback”?
If the firm fails, why should AYONE get a “bonus”?
I’d argue that alll executive compensation packages should be contingent on the enterprise surviving.
In other blog pasts, I’ve argued that no one should get a “salary” that is more than the US President. They should then get compensation in the form of bonds strung out over 20 or 40 years.
We need to figure out how to incentivize long term thinking as a matter of public policy. The tax code can help in this regard.