Posted on 02/16/2009 11:26:21 AM PST by QenBirQeni
After selling a majority stake in Miami-based City National Bancshares last November, all he did was take $60 million of the proceeds -- $60 million out of his own pocket -- and hand it to his tellers, bookkeepers, clerks, everyone on the payroll. All 399 workers on the staff received bonuses, and he even tracked down 72 former employees so they could share in the windfall.For longtime employees, the bonus -- based on years of service -- amounted to tens of thousands of dollars, and in some cases, more than $100,000.
At a time when financial titans are being paraded before Congress to explain how they blew billions on executives' bonuses even as they received a taxpayer bailout, the big-hearted banker's selfless deed stands out.
''I retired seven years ago, and all of a sudden I get this wonderful letter and phone call,'' said Evelyn J. Budde, who spent 43 years at City National Bank of Florida, rising to vice president.
''I was shocked,'' said William Perry. In 43 ½ years at City National, he climbed from janitor to vice president. Like many longtime City National employees, he forged an unbreakable bond with the bank that continued into retirement. Perry returns regularly for the annual employees' dinner.
Abess didn't publicize what he had done. He didn't even show up at the bank to bask in his employees' gratitude on the day the bonus envelopes were distributed. He was inundated with letters soon afterward.
Asked later what motivated him, Abess said he had long dreamed of a way to reward employees. He had been thinking of creating an employee stock option plan before he decided to sell the bank.
Full story.
(Excerpt) Read more at miamiherald.com ...
Taxable as income beyond the first $12k!
But seriously - a very nice gesture.
WOW!!! Some of the employees were with the bank over 40 years!!! That is saying something right there....
This was great!
I especially like that he did it from his own heart and not from being FORCED to by the government!
I looked for (but did not find) a comment section in the MH on this story. I’m sure there will be someone who will bitch that he ONLY gave away 60 million while HE got several hundred million! Look for it. Somebody WILL complain about that. This has become a nation of WHINERS!
‘’I was shocked,’’ said William Perry. In 43 ½ years at City National, he climbed from janitor to vice president. Like many longtime City National employees”
...this is how America used to operate. There was actual allegiance to employees/employers and if you could show your worth, you were rewarded. You got a gold watch, a nice good bye cake and you retired comfortably. Now with b hussein as the “overseer” people will be rewarded according to their color and sex and whining capabilities. A trend that was started years ago but will now be accelerated. As a white male, you’ll be toast. You’ll go FROM VP TO janitor.
On December 11, 1995 a fire burned most of Malden Mills to the ground and put 3,000 people out of work. Most of the 3,000 thought they were out of work permanently. A few employees were with the CEO in the parking lot during the fire and heard him say “This is not the end.” With these words began a saga that has made Aaron Feuerstein a legend among American leaders and a hero to his employees.
The story of Malden Mills and Aaron Feuerstein is the story of leadership. Business proceeds in cycles and the most recent cycle is one in which extremely highly paid CEOs are celebrated for cutting costs, downsizing, moving plant to venues of cheap labor and delivering maximum worth to stockholders. Leadership would appear to be synonymous with profit maker.
Aaron Feuerstein spent millions keeping all 3,000 employees on the payroll with full benefits for 3 months. Why? What did he get for his money? Is he a fool? Did he have some dark motive? Here is Aaron Feuerstein’s answer: “‘The fundamental difference is that I consider our workers an asset, not an expense.’ Indeed, he believes his job goes beyond just making money for shareholders, even though the only shareholders of Malden Mills are Feuerstein and his family. ‘I have a responsibility to the worker, both blue-collar and white-collar,’ Feuerstein added, his voice taking an edge of steely conviction.
‘I have an equal responsibility to the community. It would have been unconscionable to put 3,000 people on the streets and deliver a death blow to the cities of Lawrence and Methuen. Maybe on paper our company is worth less to Wall Street, but I can tell you it’s worth more. We’re doing fine.’"
Feuerstein did not throw his money away. It was not largesse. It was a well reasoned and sound leadership decision to invest millions in Malden Mills’ most critical asset, its workers. The contrast between this CEO and the currently celebrated CEOs making 30, 60 or 100 million dollars a year by eliminating jobs and moving plants is simply astounding. How much are you willing to wager that every company that closed a plant in recent years to boost stock prices has a vision statement with words like …we value and respect our employees as our most important asset? How many of the laid off employees do you suppose believe that?
To a leader that has the conviction of his beliefs, words like value and respect must be backed up with hard decisions and actions. The real test of leadership is maintaining those convictions during change and upheaval.
For longtime employees, the bonus -- based on years of service -- amounted to tens of thousands of dollars, and in some cases, more than $100,000.
By my math, $60M / 472 comes out to an average of $127K. Hence, if using a straighforward seniority-based disbursement model, the distribution should have gone roughly from a few $10K to newbies to about $300K or more for greybeards.
Of course, who am I to quibble. Like I said, great story.
Unfortunately we find that this is an isolated case, given the amount given up by a single individual. People like this CEO are a tiny minority in the business world. Shame many CEOs nowdays don’t believe in sacrifice for their companies. It’s weird that employees are asked to be loyal to companies when their executives are not expected to be loyal beyond being motivated by compensation alone.
Great story! Why aren’t these stories publicized nationally? I wonder if the network CEO-s might feel a tad pressured not to do so?
This is a wonderful gesture buy a generous human being but the media has some fuzzy math going here ..
$60 million / (399+72) employees averages $127K each.
Good with numbers and a quick typist too ... you have a bright future.
“As a white male, you’ll be toast. You’ll go FROM VP TO janitor.”
Look around. White males still pretty much run the U.S. There’s nothing wrong with that IMO, but if you think minorities and women have taken over, you’re not very observant. For instance, there are exactly 20 female CEOs among the Fortune 500 companies. Don’t know about minorities, but there’s probably fewer than 20. In Congress? 76 women, 39 blacks, and 24 Hispanics. NO blacks or Hispanics in the Senate.
It’s still a white male society.
This is such a sweet story !!!!! It is a nice change for the normal posts about some of the greed of the business world......
Isn't it? I remember when this happened.The owner is well into his 70's and could have just retired with the insurance money & lived in the lap of luxury. When the cameras cam e around, he was very humble. Told the newscaster that he owed EVERYTHING to his employees & that it's the least he could do.
I'd really like to think I would do the same, but I truely don't know.
“It’s still a white male society”.
...I get it. With the expansion of “hate crimes” legislation, b husseins willingness to make it easier for women to sue in the workplace and with most blacks feeling empowered having “one of their own” as POTUS, it’s only a matter of time. Illegals have increased retirements, college entrance is easier, affirmative action will be in full swing with hussein as P. I repeat...”As a white male, you’ll be toast”.
Isn’t Sen. Burris black?
“Illegals have increased retirements, college entrance is easier, affirmative action will be in full swing with hussein as P. I repeat...”As a white male, you’ll be toast”.”
I repeat, white males still rule. And that won’t change soon.
“I repeat, white males still rule. And that won’t change soon”.
...believe me. I hope you’re right!
“Isn’t Sen. Burris black?”
You’re right. My bad. One black senator.
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