SVB UK handed out over 15 million stg in bonuses days after HSBC rescue – Sky News

by mcardinal

Silicon Valley Bank’s UK arm handed out over 15 million pounds ($18 million) in bonuses days after its rescue deal this week by HSBC, Sky News reported on Saturday.

Payouts to staff including senior executives were signed off by HSBC earlier in the week, the report said, adding that the bonuses would not have been paid this week if SVB UK had not been acquired while still solvent.

Sky cited sources familiar with the matter as saying the bonus pool was “modest” at 15 million to 20 million pounds.

“HSBC has honored these previously agreed payments so as to retain talent and demonstrate its confidence in the bank,” a spokesperson for HSBC UK told Reuters.

SVB UK did not immediately respond to Reuters’ requests for comment.

In the United States, parent company SVB Financial Group said on Friday it had filed for a court-supervised reorganization under Chapter 11 bankruptcy proceedings to seek buyers for its assets, days after former unit Silicon Valley Bank was taken over by U.S. regulators.

Copyright 2023 Thomson/Reuters