Silvergate Capital Corp. (SICP) has outlined its strategy to wind down operations and liquidate assets of Silvergate Bank, which includes significant leadership changes. The company recently filed with the Securities and Exchange Commission to disclose the departure plans of its chief executive officer (CEO) and chief financial officer (CFO).
Change in CEO and CFO Positions
Effective immediately, Alan Lane, who held the positions of CEO for both the holding company and the bank, as well as John Bonino, chief legal officer, no longer serve in those roles. Furthermore, Antonio Martino, who currently holds the CFO positions for both Silvergate Capital Corp. and Silvergate Bank, will also depart from his positions on September 30.
Compensation and Severance Benefits
As part of the management change, the executives mentioned above will no longer receive further compensation as stipulated in their employment agreements. However, they will be eligible for certain severance benefits provided to bank employees affected by the ongoing liquidation process.
New Leadership Appointments
In light of these changes, Kathleen Fraher, previously serving as the chief transition officer of both the company and the bank, has been appointed as the company’s principal executive officer. Additionally, Andrew Surry, previously the chief accounting officer of Silvergate Bank, will take on the role of principal financial officer for Silvergate Capital Corp. once Martino steps down.
Following this announcement, shares of Silvergate remained unchanged during after-hours trading. It is worth noting that the stock experienced a remarkable 35% increase earlier that day, closing at 30 cents per share. This development comes several months after Silvergate Bank was compelled to wind down its cryptocurrency-friendly operations in March.
Silvergate Capital Corp. is firmly committed to managing its asset liquidation process effectively while ensuring a smooth transition for its staff and customers.