The chief executive of Silicon Valley Bank
cashed out stock and options for a $2.27 million net gain in the weeks before Friday’s collapse, public filings show.
CEO Greg Becker exercised stock options — meaning he paid money to convert his options into stock — and then immediately sold the stock on Feb. 27, filings show. That netted him $2.27 million in personal profits.
The sales were part of a prearranged executive stock sale plan, known as a 10b5-1 program, that Becker filed with the SEC as recently as Jan. 26, just 6 weeks before the bank collapsed.
He also sold stock on Jan. 31 for another $1.1 million, though the filings report that this was to cover a tax liability.
The stock, which Becker sold at prices ranging from $285 to $302, was worthless Friday night after the bank’s sudden two-day collapse. The collapse cost outside investors billions and sent shock waves through the banking sector as well as Silicon Valley, where the bank was a major lender to start ups and venture capital firms.
Becker’s recent stock gains are on top of the $2.6 million in cash he was paid last year, which included a $1.5 million cash bonus.
SVB was put into receivership Friday, making it the biggest U.S. banking collapse since the 2008 financial crisis.
The company was not responding last night to requests for comment.