The chief government of Silicon Valley Bank
SIVB,
cashed out inventory and choices for a $2.27 million web acquire within the weeks earlier than Friday’s collapse, public filings present.
CEO Greg Becker exercised inventory choices — which means he paid cash to transform his choices into inventory — after which instantly offered the inventory on Feb. 27, filings present. That netted him $2.27 million in private earnings.
The gross sales had been a part of a prearranged government inventory sale plan, often known as a 10b5-1 program, that Becker filed with the SEC as not too long ago as Jan. 26, simply 6 weeks earlier than the financial institution collapsed.
He additionally offered inventory on Jan. 31 for one more $1.1 million, although the filings report that this was to cowl a tax legal responsibility.
The inventory, which Becker offered at costs starting from $285 to $302, was nugatory Friday night time after the financial institution’s sudden two-day collapse. The collapse price exterior traders billions and despatched shock waves via the banking sector in addition to Silicon Valley, the place the financial institution was a serious lender to start out ups and enterprise capital corporations.
Becker’s latest inventory features are on prime of the $2.6 million in money he was paid final yr, which included a $1.5 million money bonus.
SVB was put into receivership Friday, making it the largest U.S. banking collapse because the 2008 monetary disaster.
The firm was not responding final night time to requests for remark.
Source web site: www.marketwatch.com