Beautiful Virgin Islands

Wednesday, Apr 30, 2025

Silicon Valley Bank UK arm hands out £15m in bonuses days after £1 rescue

Silicon Valley Bank UK arm hands out £15m in bonuses days after £1 rescue

Between £15m and £20m in bonus payments were made to staff at SVB UK this week after being signed off by the bank's new owner, HSBC.
The British arm of Silicon Valley Bank (SVB UK) has handed out millions of pounds in employee bonuses just days after its insolvency was averted through a Bank of England-orchestrated rescue deal.

Sky News has learnt that the payouts to staff including its senior executives were signed off by HSBC, SVB UK's new owner, earlier this week.

Sources described the bonus pool as "modest", and said it totalled between £15m and £20m.

It was unclear on Saturday how much had been awarded to Erin Platts, the UK bank's chief executive or her senior colleagues.

One insider said the bonus payments were a signal of HSBC's confidence in the talent base at its new subsidiary and that the buyer had been keen to honour previously agreed payments in order to help retain key staff.

Employing about 700 people in Britain, SVB UK is a profitable business but was brought to the brink of collapse last weekend by the travails of its American parent company.

Had it not been acquired solvently, the bonuses would not have been paid this week, according to insiders.

One pointed out that stock held by senior executives and other employees had been rendered worthless by SVB UK's near-collapse.

In the US, its banking arm has been taken into government ownership and its holding company, SVB Financial Group, has now filed for Chapter 11 bankruptcy protection as it seeks buyers for its other assets.

Bonuses were also paid to its US staff just hours before the Santa Clara-based bank collapsed, according to reports last week.

An emergency auction in which Rishi Sunak, the prime minister, played a pivotal role drew interest from challenger banks including Oaknorth and The Bank of London.

HSBC, Europe's biggest lender, struck a deal before markets opened in London on Monday to buy SVB UK for £1.

It was given a waiver from bank ring-fencing rules introduced after the 2008 financial crisis.

Jeremy Hunt, the chancellor, said the rescue had been critical to preserving funding to some of the UK's most promising start-up companies.

"The UK's tech sector is genuinely world-leading and of huge importance to the British economy, supporting hundreds of thousands of jobs," he said.

"We have worked urgently to deliver on that promise and find a solution that will provide SVB UK's customers with confidence.

"[This] ensures customer deposits are protected and can bank as normal, with no taxpayer support."

The government had been lobbied intensively last weekend by hundreds of tech entrepreneurs about the parlous state of SVB UK.

They warned of "an existential threat to the UK tech sector", adding: "The Bank of England's assessment that SVB going into administration would have limited impact on the UK economy displays a dangerous lack of understanding of the sector and the role it plays in the wider economy, both today and in the future."

The founders warned Mr Hunt that the collapse of SVB UK would "cripple the sector and set the ecosystem back 20 years".

"Many businesses will be sent into involuntary liquidation overnight," they wrote.

Sky News revealed this week that Ms Platts, who has worked in the lender's British operations since 2007, would remain in her job following talks with Ian Stuart, the HSBC UK chief executive.

SVB UK's independent directors, who include chairman Darren Pope, are also expected to stay on under HSBC's ownership.

That indicates HSBC's intention to enable the technology-focused lender to operate with some degree of autonomy on an ongoing basis.

However, the Silicon Valley Bank brand may disappear in the UK, depending upon its fate in the US, one insider said.

The turmoil at SVB has threatened to escalate into a much broader banking crisis, with the Financial Times reporting on Friday evening that UBS is in talks to take over part or all of its Zurich-based peer, Credit Suisse.

In the US, a group of large lenders including Bank of American and JP Morgan provided a $30bn deposit lifeline to First Republic on Thursday.

However, its shares continued to slump on Friday, raising renewed fears for its health.

A spokesman for SVB UK declined to comment on the bonus payments handed out this week.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Spain and Portugal Recover from Massive Blackout
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
Singapore Politicians Warn Against Foreign Interference in Election
Driver Ploughs into Vancouver Festival Crowd, Killing Nine
Depression, Fear of Defamation, and a Tragic End: New Details on Virginia Giuffre’s Suicide
“Sharia for UK, Allah Akbar!”
Massive Explosion at Iran's Bandar Abbas Port Linked to Suspicious Chemical Shipments
Incident Reflection: A Harsh Reality Check
Pakistani migrants to Danish man: “ “We have 5 children while you have 1 or 2. In 10 years, there will be more Pakistanis than Danes here.“
Clashes Erupt in London as Tensions Rise Between Indian and Pakistani Communities
Specialized anti-drone weapons deployed among security personnel Ahead of Papal Funeral
How do you fix this culture?
Corrupted from Within: How Deep State Power and Unelected Judges Hijacked Democracy Against the Will of the People
President Trump and Ukrainian President Zelensky just held an impromptu discussion on the sidelines of Pope Francis' funeral in Rome.
World Leaders Gather in Rome for Pope Francis's Funeral
Pope Francis Laid to Rest in Rome as World Leaders Attend Funeral
Alberta's Push for Independence Raises Questions About Canada's National Unity
Virginia Giuffre, Prince Andrew and Jeffrey Epstein accuser, dies by suicide
"China has survived for five thousand years, most of it without the United States as a market, and it can easily continue to survive without the U.S. market for another five thousand years — no problem," said a China analyst.
Elites vs. America: How Democrats Lost the Plot and the People
Pam Bondi Details Wisconsin Judge’s Actions Before Arrest: 'Can't Make This Up'
Not Child’s Play: How Competitive Gaming Became a Global Economic Empire
California Surpasses Japan to Become the World’s Fourth-Largest Economy
Peter Navarro: The Man Behind Trump’s Tariff Madness
Milwaukee Judge Arrested on Allegations of Aiding Undocumented Immigrant’s Escape
Former U.S. Congressman George Santos sentenced to eighty-seven months for wide-ranging fraud
Trump administration moves to BAN essentially ALL artificial food dyes in the USA food supply at RFK Jr.'s direction
Woman slaps man at sports game and gets herself and husband beat up
Pope Francis: head of the Catholic church who pushed for social and economic justice
China do not pay these tariffs - you pay it. This is new 145% tax you pay to the US government.
Nightlife in the streets of Manchester
In God We Profit
Cultural Battles in the Vatican: The Candidates in the Battle for the Holy See and Pope Francis's Testament
Global Leaders Pay Tribute to Pope Francis Following His Death
Wild Chimpanzees Observed Bonding Over Alcoholic Fruit
US Federal Reserve Chair Issues Warning on Tariff Impact
UK Prison Officers Demand Electric Stun Guns Amid Safety Concerns
China, China, China!
Australian National Charged as Mercenary for Fighting in Ukraine
Israel Considers Limited Strikes on Iran's Nuclear Facilities Amid Diplomatic Efforts
Prince Andrew Joins Royal Family Attends Easter Sunday Service at Windsor Castle
Saudi Arabia Offers Max Verstappen Unprecedented Deal to Join Aston Martin
Global Pistachio Shortage Amid Rising Demand for 'Dubai Chocolate'
Trump is assembling a coalition of Western leaders aligned with the MAGA vision, strengthening a unified front for global change
IMF Predicts No Global Recession Amid Trade Tensions
Here’s a police officer with a brilliant gift for swift education
"Some complain that we put thousands in prison. In reality, we set millions free."
This is Vienna, Austria in 2025.
Boeing Jet Returns to US from China Amid Tariff War
Canadian Federal Election: Candidates' Positions on US-Canada Relations and Donald Trump
×