Mar 19, 2023
HSBC Grants Millions in SVB UK Employee Bonuses
HSBC has acquired Silicon Valley Bank UK (SVB UK) for the nominal fee of 1 British pound, and has reportedly granted millions of pounds in employee bonuses in the aftermath.
According to unnamed sources, the bonuses were signed off “earlier this week” by HSBC UK Bank and totaled between £15m and £20m (approximately $18.26 million and $24.35 million). It is unclear how much was awarded to SVB UK’s CEO, Erin Platts, or her senior colleagues, however the insiders described the bonus pool as “modest”.
The sources noted that if SVB UK had not been acquired, the bonuses wouldn’t have been paid this week, as the stock held by senior executives and other employees had been rendered worthless. One insider also pointed out that the bonus payments were “a signal of HSBC’s confidence” in the talent base at SVB UK and were to honor “previous agreed payments” in an effort to “retain key staff”.
The acquisition of SVB UK by HSBC was announced on March 13th, and SVB UK expressed its delight in a March 17th tweet. SVB UK stated that it was “delighted” to now be part of HSBC after 14 years of supporting and “growing the UK’s innovative economy.”
The Bank of England (BoE) had previously shut down the operations of SVB UK on March 10, stating that it had a “limited presence” and no “critical functions” supporting the financial system. The BoE intended to apply to the court to place SVB into a “bank insolvency procedure” and SVB UK was to “stop making payments or accepting deposits”.
Meanwhile, SVB’s United States banking arm has been taken into government ownership. Its holding company, SVB Financial Group, filed for Chapter 11 bankruptcy protection on March 17 as it seeks buyers for its other assets.
SVB Group’s chief restructuring officer, William Kosturos, stated that the Chapter 11 process will allow SVB Financial Group to “preserve value as it evaluates strategic alternatives” for its prized businesses and assets. Kosturos emphasized that SVB Capital and SVB Securities will continue to operate, led by their respective independent teams.
The news of SVB UK’s acquisition by HSBC and the resulting employee bonuses has been welcomed by the crypto and web3 community. SVB UK is known for its involvement in the crypto and web3 space, and its acquisition by HSBC is seen as a sign of the increasing acceptance and adoption of digital assets.
SVB UK is a well-known NFT marketing agency and has been instrumental in the promotion of NFTs and other digital assets. The agency has helped many digital asset projects to reach their target audiences through its NFT marketing services, including Twitter NFT marketing. It is expected that the acquisition of SVB UK by HSBC will open up new opportunities for the agency, allowing it to expand its services and help more projects to successfully sell NFTs.
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