US senators hammered former executives of recently collapsed Silicon Valley Bank and Signature Bank on Tuesday over their paychecks, sales of stock and bonus payouts as the financial institutions struggled to stay afloat.
The 2.5-hour hearing by the Senate Banking Committee was meant to hold leadership accountable for the mismanagement that led to the banks’ failures and the regional banking crisis, but much of the focus centered around CEO compensation.
High payouts, posited lawmakers on both sides of the aisle, made execs greedy. Executives prioritized profit margins and share prices over the fundamental health of their banks, leading to a meltdown in the sector that rippled through the economy.
Read More : Excessive CEO Pay Blamed by Senators for Failures of Regional Banks