Unity’s CEO Exits Amidst Backlash – C-Suite Transitions

Communication, in all its myriad formats, is the cornerstone of a functioning society and nowhere is this more true than when it comes to corporate communication.

When writing about the disaster at Silicon Valley Bank earlier this year, we wrote,

“Silicon Valley Bank (SIVB) was neither a G-SIB or D-SIB but it was the 16th largest bank in the U.S. with $209 billion in assets as of December 31, 2022. It was shocking to see such a large bank collapse in a single day with the FDIC taking control of the bank as of this morning. Things happen gradually and then suddenly. The stock, which was trading over $267 on Wednesday was halted earlier today.

So what happened to trigger this sudden collapse? In three words, a crisis of confidence. The bank made two announcements without thinking through the second order effects of those announcements. Daniel Kahneman’s book Thinking Fast and Slow should have been required reading for the risk and communication departments of the bank.

They indicated that they were selling substantially all of their available for sale securities portfolio for $21 billion and taking a loss of $1.8 billion in Q1 2023. Then they attempted to raise additional capital through an offering. Venture capital firms, private equity firms and their portfolio companies immediately starting withdrawing cash, leading to a crisis of confidence and the eventual collapse.”

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