The former Silicon Valley Bank executive who’s taken the brunt of criticism for the lender’s collapse is refusing to commit to giving up any of the $10 million he received annually from the failed lender.
(Bloomberg) — The former Silicon Valley Bank executive who’s taken the brunt of criticism for the lender’s collapse is refusing to commit to giving up any of the $10 million he received annually from the failed lender.
Former SVB Chief Executive Officer Greg Becker told lawmakers on the Senate Banking Committee on Tuesday that unprecedented events, interest-rate hikes and negative social media coverage rather than mismanagement were the root causes of the firm’s March demise. Becker said he’d work with regulators to review compensation, but wouldn’t pledge to give anything back despite being pressed repeatedly to do so.
“I promise to cooperate with the regulators as they do a review,” Becker said in response to a question from Elizabeth Warren, a Massachusetts Democrat.
Becker has drawn ire from both Democrats and Republicans for selling $3.6 million of company stock under a trading plan less than two weeks before the firm disclosed extensive losses.
At Tuesday’s hearing, he said the stock sales were approved by the bank’s legal team. He also defended his pay and said there was “nothing irregular or accelerated” about bonuses certain employees received for 2022 performance shortly before the bank was seized.
During the hearing, Scott Shay, who served as chairman of Signature Bank, also refused to commit to giving back any of his pay.
Lawmakers pointed out that the bank failures cost the government’s bedrock deposit insurance fund billions of dollars, which will have to be replenished by other lenders.
“The Republicans want to give a work requirement for SNAP for a hungry family,” said Pennsylvania Democrat John Fetterman, referring to the government food assistance program. “Shouldn’t you have a working requirement after we sell your bank?” he said about the FDIC’s sale of SVB.
(Updates with Fetterman comment in final paragraph.)
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