Banker Gives $60 Million Profits to Employees

Feb. 27, 2009— -- Amid all the news about troubled banks and the questionable actions of some executives, Leonard Abess Jr. is a rare bright spot.

"My father was a banker," Abess said. "I grew up at the dinner table with tales of the depression and tales of what a banker meant to a community, about responsibility, handling other people's money. And that these are your neighbors, the people you live with, you see all the time and you have to protect their money."

Abess' father started a community bank in Miami Beach in 1946. Since then, City National has grown to include 18 branches and is one of the top-rated banks in the country.

"We're not there for a big profit, you know, we're not there for our egos," Abess said. "We're there to serve this community. We are there as a sacred trust for people, so we are very careful. We lend money to people we know. We lend for the right reasons. We don't make loans to do things that aren't good for community."

His community also includes his employees, many of whom have been with City National for decades.

"There's no better place to work," said Linda Naughton, who has worked at City National for 50 years. She started as a file clerk, rising to the position of managing senior vice president. "It's the only job I've ever had."

Over the years, Abess received numerous offers to buy the bank, but never believed any of the suitors would take care of his customers or his employees adequately. But, in November, when Abess was approached by Caja Madrid, a community-minded, privately held bank that he trusted, he sold a majority stake in City National, turning a good profit.

"I never ever once thought that this success was, you know, about me," said Abess, 60, who remains as chairman and CEO. "I know what it's about, it's about 400 wonderful, decent people. When I sold the bank, I didn't want the money so I gave $60 million of it to my employees. And I feel really good about it."

Using a formula of longevity plus merit, Abess distributed much of his profits to the bank's 399 employees, and 72 former ones. Although he gives bonuses every year to every employee, these checks were far bigger, totaling anywhere from tens of thousands of dollars to more than $100,000.