Silicon Valley Bank CEO Greg Becker sold nearly $30 million of stock over the past two years, raising new questions over insider stock sales.
Becker sold $3.6 million worth of shares on Feb. 27, just days before the bank disclosed a large loss that triggered stock slide and collapse. The sale capped two years of stock sales by Becker that totaled $29.5 million, according to data from Smart Insider. He sold at prices ranging from $287 a share to $598 a share.
Becker also purchased options, at lower exercise prices, as part of many of the sales and maintained his equity ownership stake.
Other executives at SVB, including Chief Marketing Officer Michelle Draper, Chief Financial Officer Daniel Beck and Chief Operating Officer Philip Cox also sold millions of dollars worth of shares since 2021.
Altogether, SVB executives and directors cashed out of $84 million worth of stock over the past two years, according to Smart Insider.
The sales have sparked criticism of of SVB’s management — as well as the broader phenomenon of insider stock sales before major declines. Ro Khanna — a Democratic congressman from California, where the tech-focused bank was based — said Becker should return the money to depositors.
“I have said that there should be a clawback of that money,” Khanna tweeted Monday. “Whatever his motives, and we should find out, that $3.6 million should go to depositors.”
Greg Becker, chief executive officer of Silicon Valley Bank, participates in a panel discussion during the Milken Institute Global Conference in Beverly Hills, California, on Tuesday, May 3, 2022.
Lauren Justice | Bloomberg | Getty Images
Becker’s share sales were part of a scheduled program, known as a 10b5-1 plan, that was filed on Jan. 26, according to SEC filings. The 10b5-1 plans allow insiders to schedule stock sales ahead of time to reduce concerns over trading on insider information. Yet SEC Chairman Gary Gensler has said the plans are rife with abuse, with insiders selling right after…
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