Investigation Overview
An investigation on behalf of current investors of SVB Financial Group (Public, NASDAQ: SIVB) over possible shareholder claims concerning breaches of fiduciary duty related to the historical and potential compensation that was awarded certain senior officers was announced.
According to the investigation by a law firm the investigation focuses on possible claims that certain SVB Financial Groups senior officers were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation from 2005-2007. SVB Financial Group is a diversified financial services company, as well as a bank holding company and financial holding company. Through SVB Financial Groups various subsidiaries and divisions, it offers a range of banking and financial products and services. SVB Financial Group offers commercial banking products and services through its principal subsidiary, Silicon Valley Bank, which is a California state-chartered bank. Certain senior officers at SVB Financial Group, were awarded salaries, bonuses, stock options and other forms of long-term, incentive or retirement compensation that was, so the investigation, excessive or unwarranted based on SVB Financial Groups performance as compared to what senior officers at comparable companies were making and/or results that were fraudulent, misleading or not long-lasting. The investigation by the law firm is also investigating claims that the prior compensation awarded at SVB Financial Group is now clearly improper based upon its current operating condition. Finally the investigation focuses also on possible claims that would allow SVB Financial Group (Public, NASDAQ: SIVB) stockholders to influence or control future compensation decisions at SVB Financial Group. SVB Financial Group is located in Santa Clara, California and had $10.02billion in total assets with a net income of $78.63million in 2008. Shares of SVB Financial Group (NASDAQ: SIVB) traded recently at $21.32, down from $66 in September 2008.