Silicon Valley Bank CEO Greg Becker has sold nearly $30 million in stock over the past two years, raising fresh questions about insider stock sales.
Becker sold $3.6 million worth of shares on Feb. 27, just days after the bank disclosed massive losses that sparked a slide and crash. The sale brings Becker’s two-year stock sales total to $29.5 million, according to Smart Insider. He’s selling it for $287 to $598 a share.
Becker also bought options at a lower strike price as part of many sales and kept his equity.
Other SVB executives, including Chief Marketing Officer Michelle Draper, Chief Financial Officer Daniel Beck and Chief Operating Officer Philip Cox, have also sold millions of dollars worth of stock since 2021.
Over the past two years, SVB executives and directors have cashed out a combined $84 million worth of stock, according to Smart Insider.
this Sales spark criticism of SVB management — and the broader phenomenon of insider stock sales ahead of a sharp drop. Ro Khanna, a Democrat from California, said Baker should return the money to depositors.
“I said the money should be recouped,” Khanna tweeted Monday. “Whatever his motive was, we should find out and that $3.6 million should go to depositors.”
Silicon Valley Bank CEO Greg Becker participates in a panel discussion during the Milken Institute Global Conference in Beverly Hills, Calif., Tuesday, May 3, 2022.
Lauren Justice | Bloomberg | Getty Images
SEC filings show that Becker’s stock sale was part of a 10b5-1 plan filed on Jan. 26. The 10b5-1 plan allows insiders to schedule stock sales in advance to reduce concerns about trading on inside information.Chairman of the Securities and Exchange Commission Gary Gensler say the plan is full of abuse, Insiders sell immediately after submitting plans, creating overlapping or multiple plans and/or by creating one-off reservation sales.
The SEC created new rules, effective February 27, for plans filed on April 1. The rules include more disclosure, transparency and a timeline for planned sales. It provides for a 90-day “cooling-off period” between the filing date and the first sale.
Under the new rules, Becker’s sales for just one month after he filed the application will not be allowed.
this SEC Sends Strong Message Charges were filed against insider sellers last month when it sent not tracked More than $20 million worth of company stock was sold through insider trading before the company’s stock price plummeted 44%.
The SEC complaint alleges that Peizer knew of the potential loss of the company’s largest customer when it formulated plans for the sale in May 2021.
Becker and other SVB executives have also been criticized for collecting their annual bonuses on Friday, hours earlier than last Friday Regulators shut down banks. On Sunday, the U.S. government Agreement with depositors of SVB and encryption friendly signature bank.