• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Thousands of SVB staffers to receive $25 million in payroll stuck in stock purchase program
Editor's Pick

Thousands of SVB staffers to receive $25 million in payroll stuck in stock purchase program

by May 3, 2023
by May 3, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

About 4,000 employees of Silicon Valley Bank are set to receive $25 million that has been trapped for weeks in an employee stock purchase program, according to the Federal Deposit Insurance Corp.

An FDIC spokesperson confirmed to NBC News on Tuesday that the money will be remitted to employees “shortly.” The payouts won’t require tapping the government’s deposit insurance fund that was used to save SVB depositors, because it concerns funds held by the bank prior to its collapse.

The agency’s move ends a month and a half of uncertainty for employees of the failed lender after government regulators shut it down March 10 and backstopped all SVB deposits days later.

But regulators’ efforts to wind down the bank, whose assets Raleigh, North Carolina-based First Citizens Bank purchased on March 27, didn’t initially address the employee stock purchase plan that had allowed SVB employees to contribute as much as 10% of their earnings (up to $25,000) into a fund that would buy the company’s stock at a discount.

Per the plan’s schedule, the fund is tapped every six months to purchase stock for the participating employees. SVB was in the middle of those purchase times when it collapsed, at which point its publicly traded stock ceased to exist.

First Citizens’ purchase of SVB assets didn’t include the ESPP funds. Instead, those payroll contributions have sat on the balance sheet of the failed lender’s holding company, known as SVB Financial Group, as an “accounts payable” ever since.

Three current SVB employees, who weren’t authorized to speak publicly about internal compensation matters, told NBC News that ambiguity over the fate of staffers’ ESPP contributions fueled worries that they had lost that money for good. One of the employees said he has over $20,000 locked up in the program.

Some current staffers raised concerns in recent weeks to the human resources department. Bank officials responded last week that they were aware of the situation and were working with SVB Financial Group and the FDIC on a resolution, without giving a timeline, according to communications seen by NBC News.

First Citizens declined to comment Tuesday.

The FDIC spokesperson acknowledged that the handling of the ESPP funds has been a lingering issue since it stepped in to resolve the second-largest bank failure in U.S. history. (Bloomberg earlier reported the agency’s planned move on Tuesday.)

All three employees said they had yet to receive internal communications about the resolution as of Tuesday afternoon, although the FDIC spokesperson said they would be notified soon.

“I’m skeptical until I actually have those funds,” one of the SVB staffers said Tuesday, but added, “If that holds true, I am absolutely relieved to say the least.”

This post appeared first on NBC NEWS
You Might Also Like
  • How birria took over restaurant menus across the country
  • From tariffs to DOGE, what companies are saying about the impact of MAGA policies
  • How a U.S. debt default would affect American households
  • Senet and Heath Consultants Collaborate to Deliver Network Connected Natural Gas Leak Detection Solutions and Services to Utilities
Share
0
FacebookTwitterPinterestWhatsapp

previous post
First Republic’s stock sinks as analysts monitor banking sector stress, despite some improvements
next post
Disney sues Florida Gov. Ron DeSantis over control of self-governing district

You may also like

Household savings are thinning. Here’s how to put money back...

July 22, 2024

Kia recalling 427,000 Telluride SUVs because they might roll away...

March 30, 2024

Delta says chaos after CrowdStrike outage cost it $550 million

August 9, 2024

Sierra Wireless Announces New 5G LPWA HL7900 Module Integrating Sony’s...

February 21, 2023

Pepper Consumer IoT Platform and Notion, Comcast’s InsurTech Business Unit,...

December 22, 2022

Increased sausage demand may be a red flag for the...

August 27, 2024

Disgraced Theranos founder Elizabeth Holmes is booked into prison in...

May 31, 2023

Abercrombie expects a strong holiday quarter as growth run continues

November 27, 2024

Americans got stingier after a pandemic surge in giving, but...

June 29, 2023

Amazon’s Nova AI agent launch puts it up against rivals...

March 31, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    New FlorLink SmartHub for Retail Enterprises...

    December 7, 2022

    How Calvin Klein and Tommy Hilfiger...

    February 6, 2025

    Walmart shifts to India from China...

    December 1, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here